The standard mileage rates for using a car for business purposes will be going up in the new year.
The Internal Revenue Service's 2019 optional standard mileage rates -- which also apply to vans, pickups or panel trucks -- are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, the rates are:
The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
|Business mileage rate in cents per mile
Twenty years ago, the mileage rate was 32.5 cents per mile.
Taxpayers also have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
The IRS said taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station.
Daily and Monthly NewsSign up now!