IRS Issues Standard Mileage Rates for 2019

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

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

The business mileage rate increased 3.5 cents for business travel driven and 2 cents for medical and certain moving expense from the rates for 2018. The charitable rate is set by statute and remains unchanged. It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The business standard mileage rate cannot be used for more than four vehicles used simultaneously.

This and other limitations are described in section 4.05 of Rev. Proc. 2010-51