2019 Standard Mileage Rates

2019 Standard Mileage Rates

Notice 2019-02

SECTION 1. PURPOSE

This notice provides the optional 2019 standard mileage rates for taxpayers to

use in computing the deductible costs of operating an automobile for business,

charitable, medical, or moving expense purposes. This notice also provides the amount

taxpayers must use in calculating reductions to basis for depreciation taken under the

business standard mileage rate, and the maximum standard automobile cost that may

be used in computing the allowance under a fixed and variable rate (FAVR) plan.

SECTION 2. BACKGROUND

Rev. Proc. 2010-51, 2010-51 I.R.B. 883, provides rules for computing the

deductible costs of operating an automobile for business, charitable, medical, or moving

expense purposes, and for substantiating, under § 274(d) of the Internal Revenue Code

and § 1.274-5 of the Income Tax Regulations, the amount of ordinary and necessary

business expenses of local transportation or travel away from home. Taxpayers using

the standard mileage rates must comply with Rev. Proc. 2010-51. However, a taxpayer

is not required to use the substantiation methods described in Rev. Proc. 2010-51, but

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instead may substantiate using actual allowable expense amounts if the taxpayer

maintains adequate records or other sufficient evidence.

An independent contractor conducts an annual study for the Internal Revenue

Service of the fixed and variable costs of operating an automobile to determine the

standard mileage rates for business, medical, and moving use reflected in this notice.

The standard mileage rate for charitable use is set by § 170(i).

SECTION 3. STANDARD MILEAGE RATES

The standard mileage rate for transportation or travel expenses is 58 cents per

mile for all miles of business use (business standard mileage rate). See section 4 of

Rev. Proc. 2010-51. However, § 11045 of the Tax Cuts and Jobs Act, Public Law 115-

97, 131. Stat

use reflected in this notice.

The standard mileage rate for charitable use is set by § 170(i).

SECTION 3. STANDARD MILEAGE RATES

The standard mileage rate for transportation or travel expenses is 58 cents per

mile for all miles of business use (business standard mileage rate). See section 4 of

Rev. Proc. 2010-51. However, § 11045 of the Tax Cuts and Jobs Act, Public Law 115-

97, 131. Stat. 2054 (December 22, 2017) (the “Act”) suspends all miscellaneous

itemized deductions that are subject to the two-percent of adjusted gross income floor

under § 67, including unreimbursed employee travel expenses, for taxable years

beginning after December 31, 2017, and before January 1, 2026. Thus, the business

standard mileage rate provided in this notice cannot be used to claim an itemized

deduction for unreimbursed employee travel expenses during the suspension.

Notwithstanding the foregoing suspension of miscellaneous itemized deductions,

deductions for expenses that are deductible in determining adjusted gross income are

not suspended. For example, members of a reserve component of the Armed Forces of

the United States (Armed Forces), state or local government officials paid on a fee

basis, and certain performing artists are entitled to deduct unreimbursed employee

travel expenses as an adjustment to total income on line 24 of Schedule 1 of Form 1040

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(2018), not as an itemized deduction on Schedule A of Form 1040 (2018), and therefore

may continue to use the business standard mileage rate.

The standard mileage rate is 14 cents per mile for use of an automobile in

rendering gratuitous services to a charitable organization under § 170. See section 5 of

Rev. Proc. 2010-51.

The standard mileage rate is 20 cents per mile for use of an automobile: (1) for

medical care described in § 213; or (2) as part of a move for which the expenses are

deductible under § 217(g). See section 5 of Rev. Proc. 2010-51

rate is 14 cents per mile for use of an automobile in

rendering gratuitous services to a charitable organization under § 170. See section 5 of

Rev. Proc. 2010-51.

The standard mileage rate is 20 cents per mile for use of an automobile: (1) for

medical care described in § 213; or (2) as part of a move for which the expenses are

deductible under § 217(g). See section 5 of Rev. Proc. 2010-51. Section 11049 of the

Act suspends the deduction for moving expenses for taxable years beginning after

December 31, 2017, and before January 1, 2026. However, the suspension does not

apply to members of the Armed Forces on active duty who move pursuant to a military

order and incident to a permanent change of station to whom § 217(g) applies. Thus,

except for taxpayers to whom § 217(g) applies, the standard mileage rate provided in

this notice is not applicable for the use of an automobile as part of a move occurring

during the suspension.

SECTION 4. BASIS REDUCTION AMOUNT

For automobiles a taxpayer uses for business purposes, the portion of the

business standard mileage rate treated as depreciation is 24 cents per mile for 2015, 24

cents per mile for 2016, 25 cents per mile for 2017, 25 cents per mile for 2018, and 26

cents per mile for 2019. See section 4.04 of Rev. Proc. 2010-51.

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SECTION 5. MAXIMUM STANDARD AUTOMOBILE COST

For purposes of computing the allowance under a FAVR plan, the standard

automobile cost may not exceed $50,400 for automobiles (including trucks and vans).

See section 6.02(6) of Rev. Proc. 2010-51.

SECTION 6. EFFECTIVE DATE

This notice is effective for: (1) deductible transportation expenses paid or

incurred on or after January 1, 2019; and (2) mileage allowances or reimbursements

paid to a charitable volunteer or a member of the Armed Forces to whom § 217(g)

applies (a) on or after January 1, 2019, and (b) for transportation expenses the

charitable volunteer or such member of the Armed Forces pays or incurs on or after

January 1, 2019

for: (1) deductible transportation expenses paid or

incurred on or after January 1, 2019; and (2) mileage allowances or reimbursements

paid to a charitable volunteer or a member of the Armed Forces to whom § 217(g)

applies (a) on or after January 1, 2019, and (b) for transportation expenses the

charitable volunteer or such member of the Armed Forces pays or incurs on or after

January 1, 2019.

SECTION 7. EFFECT ON OTHER DOCUMENTS

Notice 2018-03, as modified by Notice 2018-42, is superseded.

DRAFTING INFORMATION

The principal author of this notice is Anna Gleysteen of the Office of Associate

Chief Counsel (Income Tax and Accounting). For further information on this notice

contact Ms. Gleysteen at (202) 317-7007 (not a toll-free call).