{"id":1795,"date":"2020-01-21T08:23:26","date_gmt":"2020-01-21T08:23:26","guid":{"rendered":"https:\/\/www.oconnorcpafirm.com\/blog\/?p=1795"},"modified":"2020-01-24T22:05:29","modified_gmt":"2020-01-24T22:05:29","slug":"2020-mileage-rates-from-irs","status":"publish","type":"post","link":"https:\/\/www.oconnorcpafirm.com\/blog\/2020\/01\/2020-mileage-rates-from-irs\/","title":{"rendered":"2020 mileage rates from IRS"},"content":{"rendered":"\n<p>The Internal Revenue Service issued the 2020 optional standard mileage rates that taxpayers and tax professionals can use to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.<\/p>\n\n\n\n<p>Starting on Jan. 1, 2020, the standard mileage rates for the use of a car (along with vans, pickups or panel trucks) will be:<br><\/p>\n\n\n\n<ul><li>57.5 cents per mile driven for business use, down half a cent from the 2019 rate;<\/li><li>17 cents per mile driven for medical or moving purposes, down three cents from the 2019 rate; and<\/li><li>14 cents per mile driven on behalf of charitable organizations.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignleft is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/sourcemedia.brightspotcdn.com\/ea\/4a\/c6d31ba142c5af7a5e7a0c92e48d\/irs-headquarters-american-eagle-sign.jpg\" alt=\"\" width=\"346\" height=\"230\"\/><\/figure><\/div>\n\n\n\n<p>The business mileage rate declined half a cent for business travel driven and three cents for medical and certain moving expenses from the 2019 rates. The charitable rate is set by statute and stays unchanged.<\/p>\n\n\n\n<p>The IRS stressed that under the Tax Cuts and Jobs Act, taxpayers can\u2019t claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. They also can\u2019t claim a deduction for moving expenses, except members of the Armed Forces who are on active duty and moving under orders to a permanent change of station. For more details, check out Rev. Proc. 2019-46.<\/p>\n\n\n\n<p>The standard mileage rate for business use is based on a yearly study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes depends on the variable costs.<\/p>\n\n\n\n<p>Taxpayers also have the option of calculating the actual costs of using their vehicle as opposed to using the standard mileage rates.<\/p>\n\n\n\n<p>A taxpayer can\u2019t use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (or MACRS for short) or after claiming a Section 179 deduction for that vehicle. Furthermore, the business standard mileage rate can\u2019t be used for more than five vehicles simultaneously. These and other limitations are explained in section 4.05 of&nbsp;<a href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/rp-19-46.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Rev. Proc. 2019-46<\/a>.<\/p>\n\n\n\n<p><a rel=\"noreferrer noopener\" href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/n-20-05.pdf\" target=\"_blank\">Notice 2020-05<\/a>&nbsp;discusses the standard mileage rates, the amount a taxpayer needs to use in figuring reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer can use in computing the allowance under a fixed and variable rate plan. For employer-provided vehicles, the notice also describes the maximum fair market value of automobiles first made available to employees for personal use in calendar year 2020 for which employers can use the fleet-average valuation rule or the vehicle cents-per-mile valuation rule.<\/p>\n\n\n\n<p style=\"font-size:11px\"><em>Source:  Michael Cohn&nbsp;Editor-in-chief, AccountingToday.com <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If your company has employees on the move, one of your concerns is likely how to reimburse them for the miles they drive for business. Whether employees are transporting patients to a hospital, moving construction equipment, delivering packages or food, or doing any other number of jobs that require them to drive, it\u2019s essential that they accurately keep track of their vehicle mileage, and that they\u2019re being reimbursed appropriately.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[157],"tags":[152,155,156],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>2020 mileage rates from IRS - O&#039;Connor CPA Firm<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.oconnorcpafirm.com\/blog\/2020\/01\/2020-mileage-rates-from-irs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"2020 mileage rates from IRS - O&#039;Connor CPA Firm\" \/>\n<meta property=\"og:description\" content=\"If your company has employees on the move, one of your concerns is likely how to reimburse them for the miles they drive for business. Whether employees are transporting patients to a hospital, moving construction equipment, delivering packages or food, or doing any other number of jobs that require them to drive, it\u2019s essential that they accurately keep track of their vehicle mileage, and that they\u2019re being reimbursed appropriately.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.oconnorcpafirm.com\/blog\/2020\/01\/2020-mileage-rates-from-irs\/\" \/>\n<meta property=\"og:site_name\" content=\"O&#039;Connor CPA Firm\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/lorrie.toillion\" \/>\n<meta property=\"article:published_time\" content=\"2020-01-21T08:23:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-01-24T22:05:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/sourcemedia.brightspotcdn.com\/ea\/4a\/c6d31ba142c5af7a5e7a0c92e48d\/irs-headquarters-american-eagle-sign.jpg\" \/>\n<meta name=\"author\" content=\"Lorrie Toillion, CFP\u00ae\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Lorrie Toillion, CFP\u00ae\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.oconnorcpafirm.com\/blog\/2020\/01\/2020-mileage-rates-from-irs\/\",\"url\":\"https:\/\/www.oconnorcpafirm.com\/blog\/2020\/01\/2020-mileage-rates-from-irs\/\",\"name\":\"2020 mileage rates from IRS - O&#039;Connor CPA Firm\",\"isPartOf\":{\"@id\":\"https:\/\/www.oconnorcpafirm.com\/blog\/#website\"},\"datePublished\":\"2020-01-21T08:23:26+00:00\",\"dateModified\":\"2020-01-24T22:05:29+00:00\",\"author\":{\"@id\":\"https:\/\/www.oconnorcpafirm.com\/blog\/#\/schema\/person\/ef553847f4ae3933d168f0793a2e36b4\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.oconnorcpafirm.com\/blog\/2020\/01\/2020-mileage-rates-from-irs\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.oconnorcpafirm.com\/blog\/2020\/01\/2020-mileage-rates-from-irs\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.oconnorcpafirm.com\/blog\/2020\/01\/2020-mileage-rates-from-irs\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.oconnorcpafirm.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"2020 mileage rates from IRS\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.oconnorcpafirm.com\/blog\/#website\",\"url\":\"https:\/\/www.oconnorcpafirm.com\/blog\/\",\"name\":\"O&#039;Connor CPA Firm\",\"description\":\"Denver CPA Firm and Business Advisor\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.oconnorcpafirm.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.oconnorcpafirm.com\/blog\/#\/schema\/person\/ef553847f4ae3933d168f0793a2e36b4\",\"name\":\"Lorrie Toillion, CFP\u00ae\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oconnorcpafirm.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/bc2449874ed2e5059111740cd975800d?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/bc2449874ed2e5059111740cd975800d?s=96&d=mm&r=g\",\"caption\":\"Lorrie Toillion, CFP\u00ae\"},\"description\":\"Accounting Specialist, Tax Assistant, and Client On-Boarding Associate.\",\"sameAs\":[\"https:\/\/www.oconnorcpafirm.com\/\",\"https:\/\/www.facebook.com\/lorrie.toillion\",\"https:\/\/www.linkedin.com\/in\/lorrietoillioncfp\/\",\"Lorrie\"],\"url\":\"https:\/\/www.oconnorcpafirm.com\/blog\/author\/lorrie\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"2020 mileage rates from IRS - O&#039;Connor CPA Firm","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.oconnorcpafirm.com\/blog\/2020\/01\/2020-mileage-rates-from-irs\/","og_locale":"en_US","og_type":"article","og_title":"2020 mileage rates from IRS - O&#039;Connor CPA Firm","og_description":"If your company has employees on the move, one of your concerns is likely how to reimburse them for the miles they drive for business. 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