IRS Standard Mileage Rates for 2020

If you use a vehicle for certain driving purposes, you can deduct your costs based on your actual expenses or rely on an IRS-set mileage rate. The IRS has announced the standard mileage rates that can be used for deductible-driving costs in 2020 (Notice 2020-5). These rates apply for the use of a car, van, pickup, or panel truck:

  • 57.5 cents per mile for business use, which is down one half a cent from 2019
  • 17 cents per mile for medical or moving purposes (for certain members of the military), which is down three cents from 2019
  • 14 cents per mile for charitable purposes. This rate is fixed by law and is not adjusted annually by the IRS.

If you use the standard mileage rate to figure your deduction for business use of a vehicle, you must reduce the basis of the vehicle by a cents-per-mile rate. For 2020, the rate is 27 cents per mile (up one cent from the 2019 rate).

Source : JK Lasser Posts >> Tax News