Update of 2018 Standard Mileage Rates- Notice 2018-42

Update of 2018 Standard Mileage Rates- Notice 2018-42

The IRS just recently posted updates regarding changes to the use of the standard mileage rates, as well as increased depreciation limits for automobiles.  Although the business standard mileage rate remains at 54.5 cents per mile, new amendments have been made as a result of the recent suspension of all miscellaneous itemized deductions (announced under Trump’s Tax Cuts and Jobs Act) that are subject to the 2% of AGI floor.  This suspension applies to the taxable years beginning after December 31, 2017, and before January 1, 2026.

Another notable change by the Tax Cuts and Jobs Act is the repealing of the moving expense deduction for individuals from 2018 to 2025 (except for active duty military).

The final change involves permanently increasing the depreciation limits for automobiles placed in service as of 2018.  The maximum standard automobile cost is raised to $50,000 for all automobiles, including trucks and vans.

https://www.irs.gov/pub/irs-drop/n-18-42.pdf

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The Cultural Alliance of Greater Washington has worked with Bormel, Grice & Huyett, P.A., since 1988. Their knowledge of the arts and the arts community make their services invaluable. They can translate accounting terminology into a comprehensive language. For many organizations, the accounting firm of Bormel, Grice & Huyett provides the financial "information bridge." We whole-heartedly recommend Bormel, Grice & Huyett, excellent accountants who care about our arts organizations.
Jennifer Cover Payne, Executive Director, Cultural Alliance of Greater Washington

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