Tags: Income Tax, IRS Mileage Rate, Mileage, Sarasota Accounting, Sarasota Accounting Firm, Sarasota Tax Returns

The Internal Revenue Service has issued the 2019 optional standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, new standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 58 cents per mile for business miles driven, up from 54.5 cents for 2018.
  • 20 cents per mile driven for medical or moving purposes, 1 cent higher from 2018. (The medical and moving expense deductions may be affected by the pending tax reform legislation)
  • 14 cents per mile driven in service of charitable organizations, unchanged from 2018.

Notice 2019-02, posted on IRS.gov, contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.