The IRS issued Notice 2019-2, updating optional standard mileage rates for business use of a vehicle. As of Jan. 1, 2019 the standard mileage rates for cars, vans, pickups or panel trucks are as follows:
58 cents per mile for business miles driven (up from 54.5 cents per mile in 2018)
20 cents per mile for medical care (a two cent increase)
14 cents per mile for miles driven in service of charitable organizations (remains unchanged)
The fixed and variable rate (FAVR) amounts were recalculated last year after the Tax Cuts and Jobs Act retroactively amended bonus depreciation rules. To compute the allowance under a FAVR plan, the maximum standard automobile cost is $50,400 for 2019 for all automobiles (including trucks and vans), an increase of $400 from 2018. Under a FAVR plan, a standard amount is deemed substantiated for an employer's reimbursement to employees for expenses they incur in driving their vehicle in performing services as an employee for the employer.
You're Invited! Annual Not-For-Profit Accounting Update
Thursday, September 26, 2019
Hosted at Detroit Historical Museum
Save The Date!
Middle Market Manufacturing Outlook
Wednesday, October 23
Hosted at the Detriot Athletic Club
7:30 AM - 11:30 AM