New Mileage Rate for 2019!
It’s a new year and the IRS has once again updated the mileage rate for 2019.
Beginning January 1, 2019, the standard mileage rate increased from 54.5 cents in 2018 to 58 cents per mile for business miles driven. The IRS announced this increase on December 14, 2018. See the press release here: https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2019.
The mileage rate is the amount of deduction you can take for each mile driven for business purposes. Employers are allowed to reimburse for mileage up to the standard mileage rate of 58 cents per mile for employees who drive for business purposes and business owners are allowed to deduct for miles driven on behalf of the business at this rate as well. For example, f you drive 10,000 miles for your business in 2019, you would be allowed a deduction of $5,800 from your taxable income, up from $5,450 in 2018.
Best wishes for a happy and prosperous 2019!
Holly Hansen, Controller