08 Jan 2024 IRS Announces 2024 Standard Mileage Rates
The IRS has released the 2024 standard mileage rates used to calculate the deductible costs of using a vehicle for business, charitable, medical, or moving purposes.
Updated mileage rates for 2024
For business use, the standard mileage rate has been increased to 67 cents per mile, up 1.5 cents from 2023.
On the other hand, the mileage rate for medical or moving purposes for qualified active-duty members of the Armed Forces has been reduced by 1 cent from 2023, bringing it to 21 cents per mile.
The mileage rate for service in charitable organizations remains the same at 14 cents per mile, as it is set by statute.
These rates are applicable for all types of vehicles, whether they are powered by electricity, hybrid technology, gasoline, or diesel.
It’s crucial to note that due to the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Moreover, deduction claims for moving expenses are not permitted unless the taxpayer is a member of the Armed Forces on active duty moving under orders to a permanent change of station.
Calculating vehicle expenses
Taxpayers also have the option to calculate the actual costs of using their vehicle. But, if the standard mileage rate is chosen in the first year of the car being available for business use, they must continue to use it in the later years. Later, they can choose between the standard mileage rate or actual expenses. For leased vehicles, the standard mileage rate method must be used for the entire lease period (including renewals) if the standard mileage rate is chosen.
It is essential for taxpayers to stay informed about these updates to ensure accurate calculations and compliance with tax laws. For assistance determining which deduction methods are optimal for your situation, please contact our office.
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