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The IRS has announced that in 2019 the optional standard mileage rates will be as follows: the rate for business travel will increase to 58.0¢ per mile, the rate for medical care will increase to 20¢ per mile, and the rate for charitable driving remains fixed by statute at 14¢.
These standard mileage rates replace separate deductions for lease payments (or depreciation if the car is owned), maintenance, repairs, tires, gas, oil, insurance and license and registration fees. Taxpayers may, however, still claim separate deductions for parking fees and tolls connected to business driving.
Employers that require employees to supply their own vehicles may reimburse them at a rate that doesn't exceed the standard business rate for employment-connected business mileage, whether the vehicles are owned or leased. The reimbursement is treated as a tax-free accountable-plan reimbursement if the employee substantiates the time, place, business purpose, and mileage of each trip.