The Internal Revenue Service (IRS) determines the standard mileage rates each year to be used when calculating the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Dating back to the beginning of the year (January 1, 2018) through December 31, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 5 cents for every mile of business travel driven, up 1 cent from the rate allowed in 2017.
- 18 cents per mile driven for medical or moving purposes, up 1 cent from the rate allowed in 2017.
- 14 cents per mile driven in service of charitable organizations, same as the rate allowed in 2017.
The business mileage rate and the medical and moving expense rates each increased 1 cent per mile from the rates allowed in 2017. The charitable rate is set by statute and thus remained unchanged.
The IRS uses an independent contractor to conduct an annual study of the fixed and variable costs of operating an automobile to determine the standard mileage rates used each year.
Keeping Track of Your Mileage
To use the standard mileage rate, you simply need to keep track of your miles and multiply by (54.5 cents for business purposes), (18 cents for medical or moving purposes) or (14 for charitable purposes).
You always have the option of calculating the actual costs of using your vehicle rather than using the standard mileage rates. If you choose to use the actual costs method, you must maintain adequate records or other sufficient evidence or receipts of your actual costs to prove the figure you use on your return.
Whether you chose to us the standard mileage rates or the actual cost method of operating a vehicle for tax purposes, if you find yourself owing a tax debt of any kind and are wondering how to deal with it, please contact us to schedule an appointment for a free initial consultation.
If you would like to discuss your options for dealing with your other debts via Bankruptcy, we can answer all your questions regarding Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, stopping a foreclosure or wage garnishment, avoiding liens, stopping law suits, discharging medical debt, personal loans, payday loans, credit card debt, etc. We can alleviate your stress! We want to help and we can help you! Contact the knowledgeable attorneys at Bond & Botes today to schedule a free consultation.