The IRS has published the 2019 standard mileage rates. New rate for transportation and reimbursements is 58 cents, which is up from 54.5 cents in 2018. That is an increase of 3.5 cents.
New rates from the IRS, along with some comments on the impact of TCJA legislation are found in Notice 2019-02:
SECTION 3. STANDARD MILEAGE RATES
The standard mileage rate for transportation or travel expenses is 58 cents per mile for all miles of business use (business standard mileage rate). … However, § 11045 of the Tax Cuts and Jobs Act, Public Law 115- 97, 131. Stat. 2054 (December 22, 2017) (the “Act”) suspends all miscellaneous itemized deductions that are subject to the two-percent of adjusted gross income floor under § 67, including unreimbursed employee travel expenses, for taxable years beginning after December 31, 2017, and before January 1, 2026. Thus, the business standard mileage rate provided in this notice cannot be used to claim an itemized deduction for unreimbursed employee travel expenses during the suspension.
The standard mileage rate is 14 cents per mile for use of an automobile in rendering gratuitous services to a charitable organization under § 170. See section 5 of Rev. Proc. 2010-51.
The standard mileage rate is 20 cents per mile for use of an automobile: (1) for medical care described in § 213; or (2) as part of a move for which the expenses are deductible under § 217(g). See section 5 of Rev. Proc. 2010-51. Section 11049 of the Act suspends the deduction for moving expenses for taxable years beginning after December 31, 2017, and before January 1, 2026. However, the suspension does not apply to members of the Armed Forces on active duty who move pursuant to a military order and incident to a permanent change of station to whom § 217(g) applies. Thus, except for taxpayers to whom § 217(g) applies, the standard mileage rate provided in this notice is not applicable for the use of an automobile as part of a move occurring during the suspension.
SECTION 4. BASIS REDUCTION AMOUNT
For automobiles a taxpayer uses for business purposes, the portion of the business standard mileage rate treated as depreciation is 24 cents per mile for 2015, 24 cents per mile for 2016, 25 cents per mile for 2017, 25 cents per mile for 2018, and 26 cents per mile for 2019.
Standard rates for the last several years:
When we were “rendering gratuitous services” to Youth for Understanding, we clearly fell under the lower mileage rate.
Hi John:
Gotta’ love that fancy word for ‘charitable work.’
Jim
If I am employed by a non profit and have to use my personal vehicle for work would I receive the charitable rate or standard mileage rate?
Hi Jennifer:
Since you are an employee, the standard mileage rate is the upper limit on non-taxable reimbursements. If you account for your miles, your employer may (if that is the charity’s choice) reimburse you up to the business rate without the reimbursement being taxable.
Jim