The Internal Revenue Service has announced new mileage rates for 2019 for use in calculating reimbursements or deductions for tax purposes:
- Business use: 58 cents a mile, up from 54.5 cents a mile in 2018
- Medical use: 20 cents a mile, up from 18 cents a mile in 2018
- Moving use: 20 cents a mile, up from 18 cents a mile in 2018
- Charitable use: 14 cents a mile, the same as in 2018
In addition, the IRS has adjusted the standard vehicle cost for calculating FAVR (Fixed and Variable Rate) programs. New for 2019, the IRS announced a single cost that applies to automobiles, trucks and vans rather than one rate for automobiles and another rate for trucks and vans:
- For automobiles, trucks and vans, the standard vehicle cost may not exceed $50,400 up from $27,300 for automobiles and $31,000 for trucks and vans.
To read more, IRS Notice 2019-02 may be found on the IRS website: irs.gov/pub/irs-drop/n-19-02.pdf.
Let’s connect and we’ll show you how a FAVR (Fixed and Variable Rate) plan can reduce cost when compared to the IRS rate for business use.