Today TaxMama®finally got the 2019 mileage rates from the IRS.
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||2019||2018|
|in the mileage rate||26.0¢||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: https://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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