The optional standard mileage rates for business use of a vehicle will increase significantly in 2019, after just a slight increase in 2018. Taxpayers may use these optional standard mileage rates to calculate the deductible costs of operating an automobile (van, pickup or panel truck) for business, charitable, medical or moving purposes. For business use, the rate for 2019 will be 58 cents per mile (up from 54.5 cents per mile in 2018). Driving for medical or moving purposes may be deducted at 20 cents per mile (up from 18 cents per mile in 2018). The portion of the business standard mileage rate that is treated as depreciation will be 26 cents per mile for 2019 (up from 25 cents per mile in 2018). The rate for service to a charitable organization remains unchanged at 14 cents per mile.
Changes Resulting From the Tax Cuts and Jobs Act
Since The Tax Cuts and Jobs Act (TCJA) suspended the miscellaneous itemized deduction under Section 67 for unreimbursed employee business expenses from 2018 to 2025, the IRS notice explains that the standard mileage rate cannot be used to claim a deduction for those expenses during that period. However, an exception to that disallowance applies to state or local government officials paid on a fee basis. They are permitted to deduct mileage expenses on line 24 of IRS Form 1040 and may continue to use the 58 cents per mile business standard mileage rate.