The Internal Revenue Service (IRS) finally issued the optional standard mileage rates for 2020 used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Doeren Mayhew has outlined the updated rates effective beginning on Jan. 1, 2020 below:
Business use mileage is 57.5 cents per mile, down from 58 cents.
Medical or moving purpose mileage is 17 cents per mile, down from 20 cents.
Service of charitable organizations is 14 cents per mile, an amount currently fixed by Congress.
The decrease comes as a result of an annual study of fixed and variable costs of operating an automobile, as well as variable costs related to medical or moving purposes.
It is important to remember that you do have the option of calculating the actual costs of using your vehicle rather than using the standard mileage rates. Contact a Doeren Mayhew tax advisor to weigh your options.