Reminder: New 2020 Mileage Rates

Share this blog!

Subscribe

Sign up for our eNewsletter, Good Sense, to get updates on financial, strategic and operational best practices for financial institutions.

Subscribe

Get the latest information on legislation, tax reform, business guidance and on farm optimization strategies from your Pinion Ag Experts.

Subscribe

Get the latest information on legislation, tax reform, business guidance and biofuel manufacturing optimization strategies from your Pinion Biofuels Experts.

Reading Time: < 1 minute

The IRS issued a slight decrease in the standard mileage rates for business travel, effective January 1, 2020.

While the IRS states that standard mileage rates can be applied to the use of a car, van, pickup or panel truck used for business purposes, it’s important to note the correct application of the deduction.

The IRS 2020 Mileage Rates for Using a Vehicle for Business Purposes are:

  • 57.5 cents per mile for each business mile (a decrease of .5 cents per mile from 2019)
  • 17 cents per mile to cover moving or medical purposes (a decrease of 3 cents per mile)
  • 14 cents per mile driven for charitable organizations (non-variable)

According to the IRS, taxpayers still have the option to calculate the actual costs of using their vehicle rather than using the standard mileage rates.

Other noteworthy guidelines issued by the IRS:

  • Under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses.
  • Taxpayers also cannot claim a deduction for moving expenses (except Armed Forces members on active duty).
  • A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method or after claiming a Section 179 deduction for that vehicle.
  • The business standard mileage rate cannot be used for more than five vehicles used simultaneously.

For details and situations where you cannot use the standard mileage rate, visit: IRS Standard Mileage Rates.

Contact a K·Coe Isom tax advisor with questions about this deduction and its applicability.

Pinion People Related to this Post

No people have been associated with this post.