The IRS issued Notice 2018-3, updating optional standard mileage rates for business use of a vehicle. As of Jan. 1, 2018 the standard mileage rates for cars, vans pickups or panel trucks are as follows:
To compute the allowance under a fixed and variable rate (FAVR) plan, the maximum standard automobile cost is $27,300 (down from $27,900 in 2017) for and $31,000 for trucks and vans (down from $31,300 in 2017). 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.
Wednesday, April 24, 2019 | 7:30 AM – 9:30 AM EDT | The Hartford Club