The new cents-per-mile expense deductions for business driving is put out year by the IRS.

Simultaneously, the IRS provides the maximum amount a car v. van or light truck for which the cents-per-mile method can be exercised.

Now available for the 2019 calendar year, the cents-per-mile or fleet-average valuation rule for a vehicle provided to employees for personal use. You can claim up to $50,400.

The $50,400 limit now applies to both passenger autos and light trucks and vans. Prior to this, different limits were provided for the two categories.

Below is the 2019 cents-per-mile rates:

Standard mileage rates                 2019                       2019

Medical                                                15¢/mi                  20¢/mi

Business*                                            54.5¢/mi              58¢/mi

Charitable rate                                  14¢/mi                  14¢/mi

Relocation**                                     18¢/mi                  20¢/mi

*Applies to those where no depreciation was taken on owned/leased passenger autos, vans, pickups or panel trucks and up to 4 taxis used for hire.

**Beginning in 2018, all relocation payments are taxable to the employee and tax deductible for employer.

Note: The employee cannot deduct relocation expenses, if they are not reimbursed.

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