The Internal Revenue Service recently issued the 2018 optional standard mileage rates to be used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
As of January 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:
The mileage rate for service to a charitable organization is not alterable by the IRS. Instead, it must be changed by statute passed by Congress.
It is important to remember that a taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. For more information, please contact one of our professionals today.
Receive Free financial tips & Tax Alerts!
"*" indicates required fields
In an era of growing environmental awareness and the push for sustainable living, homeowners are more interested than ever in upgrading their living spaces to be energy-efficient. However, it’s not…
Do you and your spouse together operate a profitable unincorporated small business? If so, you face some challenging tax issues. The Partnership Issue An unincorporated business with your spouse is…
The IRS announced that it has stopped processing all new Employee Retention Credit (ERC) refund claims and will continue its moratorium at least through December 31, 2023. (IR-2023-169) In IRS…