On Friday, December 14, 2018, the IRS announced (Notice 2019-2) that the optional standard mileage rate for business use of a vehicle will increase significantly in 2019. The rate will be 58 cents per mile up from 54.5 cents.

Taxpayers can use the standard mileage rate to calculate the deductible costs of operating an automobile. The standard mileage rate also can be used under as the maximum amount an employer can reimburse an employee for operating a vehicle for business purposes.

Using the standard mileage rate is deemed more convenient by many taxpayers than tracking actual costs such as gasoline, oil, repair, insurance, registration, and depreciation. And, taxpayers who use it are still entitled to additional deductions for the business portion of any loan interest and parking fees.

With over 20 years of experience in public accounting, Amanda Bechen CPA owns Bechen & Company PC located in Wagner, SD, and can be contacted at 605-384-4200 or www.bechenco.com.