The Thriving Small Business

2019 IRS Standard Mileage Rate

by

It is hard to believe that we are half way through the first quarter of 2019!

As we settle into 2019, people are starting to ask what the 2019 standard mileage rate will be.

The gas and wear and tear on a vehicle to make a simple trip to the hardware store, print shop or neighborhood bakery adds up for employees making a modest salary.

Many businesses reimburse employees for use of personal vehicles for work related travel to help cover the cost of these trips.

This benefit allows the employee to be reimbursed for work related travel using personal vehicles.

Businesses use this standard mileage rate for calculating deductible costs associated with business automobile expenses.

Others can use the deduction for miles accumulated for charitable volunteer work, deductible moving expenses or miles for approved medical care.

The IRS recently announced slight changes to the 2019 Standard Mileage Rate.

The rate for business miles, as well as medical and moving rates, both increased a few cents per mile from the 2018 rate.

Employers reimburse business related mileage for employees using their vehicles for company related business.

The standard mileage rates that went into effect on January 1, 2019 are now:

  • 58 cents for every mile of business travel driven – up 3.5 cents from the 2018 rate.
  • 20 cents per mile driven for medical or moving purposes – up 2 cents from the 2018 rate.
  • 14 cents per mile driven in service of charitable organizations.

Mileage reimbursement can be applied to cars, vans, panel or pickup trucks.

You should note that you may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.

Organizations that reimburse employee mileage should require employees to keep accurate records and submit request for reimbursement on a regular basis.

Keep in mind with the new Tax Cuts and Jobs Act (TCJA), what you are able to deduct may have changed. Consult your tax professional for questions regarding what your qualified deductions will be.

More information is available at IRS.gov.