2019 Mileage Rates

          Today TaxMama®finally got the 2019 mileage rates from the IRS.



Dear Family,

Normally, the IRS releases the next year’s mileage information by the end of October. This year, we’re feeling lucky to get it in mid-December.

Here are the new and old rates:

Type of mileage 20192018
Business58.0¢54.5¢
Moving/Medical20.0¢18.0¢
Charity14.0¢14.0¢
Depreciation included
in the mileage rate26.0¢25.0¢

Charity never changes – it literally takes an act of Congress. The IRS doesn’t have the right to update that number for inflation.

And just in case you were not aware, when you use the mileage rate, you are also depreciating your car. Surprised? Uh huh. So when you sell the business vehicle, make sure to reduce the basis by the amount of the depreciation you wrote off each year. Above, you can see the numbers for 2019 and 2018.

To look up the depreciation amounts built into the mileage rate for earlier years, visit this website: http://www.smbiz.com/sbrl003.html#dsm

Incidentally,these rates only apply to businesses. Employees may no longer take deductions for their business mileage.

And remember, you can find answers to all kinds of questions about taxes and business issues, free. Where? Where else? At www.TaxMama.com.

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To help you with your 2018/2019 tax planning, please sign up for the on-demand webinar –  SPECIAL Tax Cuts and Jobs Act to help folks who are self-employed, and folks with large employee business expenses to restructure your tax picture and cut your taxes.  Practical Templates and handouts are included.
http://taxmama.com/asktaxmama/webinar-the-trump-tax-plan/