IRS Standard Mileage Rate for 2019

IRS Standard Mileage Rate for 2019

According to IRS, Standard Mileage Rate has grown by 3.5 cents for the year 2019 and now constitutes 58 cents for every business mile driven by rideshare and delivery drivers. Whereas, driving a mile for medical or moving purposes accounts for 20 cents (growth by 2 cents) and that for charitable organizations service – 14 cents.

How it works?

Standard Mileage Rate is based on fixed and variable costs of operating vehicle making Standard Mileage Deduction Method extremely popular, since it allows calculating tax deductions using the total number of miles driven for business, which is handy.

Am I allowed to use Standard Mileage Deduction Method?

You are not eligible to use Standard Mileage Deduction Method if you have already used any depreciation method or in case you are utilizing more than 4 vehicles at the same time. For more information see section 4.05 of Rev. Proc. 2010-51.

What should I do if I am not eligible?

In this case, you should pick Actual Expenses Deduction Method. It is notable that you will need to keep track of your vehicle expenses (gas, vehicle registration, maintenance and repairs, depreciation, registration fees, lease payments), as well as common operating expenses (fees, tolls, car wash, business meals, etc). You may learn more on top deductible expenses for rideshare & delivery drivers here.

 

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