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The Internal Revenue Service has issued the standard mileage rates for calculating the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The standard rate for vehicles driven for business purposes is 57.5 cents per mile for 2020, down a half cent from the 2019 figure.

The rate for medical or moving purposes for mileage driven this year is 17 cents per mile. That is down three cents per mile from the 2019 rate. The IRS notes that because of the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. They also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station. Taxpayers have the option of calculating the actual cost of using their vehicle. For more details, see Rev. Proc. 2019-46 (PDF). The rate for charitable use, which is set by law, remains at 14 cents per mile driven. Taxpayers cannot use the business rate after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. The standard rate cannot be used for more than five vehicles used simultaneously.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Tuesday, 07 January 2020
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