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IRS Sets Mileage Rates for 2018

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With the release of IRS Notice 2018-3, the IRS has set the various mileage rates for 2018. They are as follows:

Business mileage rate           54.5 cents per mile

Medical and moving rate       18.0 cents per mile

Charitable mileage rate         14.0 cents per mile

 

Pursuant to Notice 2018-3:

Standard mileage rates for 2018. Notice 2018-3 provides that the standard mileage rate for transportation or travel expenses is 54.5¢ per mile for all miles of business use (business standard mileage rate). The standard mileage rate is 18¢ per mile for use of an auto (1) for medical care described in Code Sec. 213; or (2) as part of a move for which the expenses are deductible under Code Sec. 217. The standard mileage rate is 14¢ per mile for use of an auto in rendering gratuitous services to a charitable organization under Code Sec. 170.

Note that the charitable mileage rate has been set at 14 cents per mile by statute. There was a provision in the House proposal for tax reform (under Sec. 1306) that would have allowed the IRS to determine, and make periodic adjustments to, the charitable standard mileage rate, taking into account the types of costs that are deductible under section 170 of the Code when operating a vehicle in connection with providing volunteer services. This provision is not included in the final conference bill.

Please contact our tax team with any questions.

Dave Moja

Dave serves as Partner and is dedicated to meeting client needs in the exempt organization tax arena through review of client returns, consulting engagements, training, and the compilation of the annual CapinCrouse Higher Education Tax Reporting Trends Project. He has 30 years of accounting experience and serves several industry committees, including the AICPA Not-for-Profit Advisory Council. Dave has also served on the IRS Advisory Committee on Tax Exempt and Government Entities (ACT).

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