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.