On December 31, 2019, the IRS announced 2020 Standard Mileage Rates. More details are available in IRS Notice 2020-05.
- 57.5 cents per mile for business use (down from 58 cents in 2019)
- 14 cents per mile for charitable purposes (no change from 2019)
- 17 cents per mile for medical purposes (down from 20 cents in 2019)
Here are two points to remember. (See section 4.05 of IRS Rev. Proc. 2019-46 for more information.)
- You may generally only use the business standard mileage rate if you did not claim an accelerated type of depreciation for the vehicle’s first year of use.
- A business may not use the standard mileage rate if it owns or leases five or more vehicles. Actual costs must then be used.
Do you work for someone else and use your vehicle for your employer’s business purposes?
- Ask your employer to establish a reimbursable plan, allowing you to be reimbursed for business miles. Why? Itemized deductions are currently suspended… which means you can’t take a personal deduction for unreimbursed mileage on your personal tax return.
- Remember that commuting is never deductible by you or your employer.