Business & Financial Solutions
Business & Financial Solutions
TAX HELP SERVICE AND PREPARATION
(855) 557-2222
Free Consultation
  • twitter
  • facebook
  • linkedin
  • Home
  • Services
  • About Us
  • Affiliates
  • Location
    • Frederick
      • 10 Things Every Frederick Business Owner Should Know
      • 12 Tax Tips For People Living In Frederick Maryland
    • Rockville
      • Rockville Maryland Name One Of The Best Places To Live
      • Top 10 Things To Do In Rockville Maryland
    • McLean
      • 10 Things Every Business Owner Should Know About McLean Va
      • What is Tysons Corner Mall, How Can It Help Your Business
  • Contact Us
  • Careers
  • Blog
  • Client Portal

What Is The IRS Mileage Rate For 2018

What Is The IRS Mileage Rate For 2018? Changes From 2017
When you travel for work and deduct mileage, you wait with bated breath every year for the IRS to announce the new rates. 2018 rates are in, and with some slight changes. I’m here to introduce the new rates and help you figure out how you might be able to deduct this tax season. Sadly, driving to and from work is not deductible. In order to deduct mileage, you would need to actually travel in the conducting of your work (like for sales), or for medical, moving, or in support of a charitable organization.

So, what are the new rates?
The business rate has increased one cent traveled mile traveled for business. If you are traveling for moving or medical purposes, you may be able to deduct 18 cents per mile. Working to support a charitable organization, in addition to getting you some good karma, will allow you to deduct 14 cents per mile.

How does it work? What do I have to do?
Basically, you are allowed to deduct the miles you travel in the above-mentioned areas from your taxable income. Just like everything with the Federal Government, you need to keep documentation in case you get audited. Using a notepad or an app on your phone to record all acceptable travel is an absolute must. These are called the “Standard Rates” and are the easiest way to deduct mileage. They make it easy to deduct a pretty fair amount if you travel for work, but less than 50% of your total yearly driving.

What if I think I should be able to deduct more?
You might be able to. You can keep meticulous notes and excellent documentation as to the actual amounts used in your acceptable travel to deduct what is called “Actual Mileage.” Examples of things that can be included in Actual Mileage include:

  • Gas, repairs, certain parts
  • Tolls, parking, garage fees
  • Licenses, registration, and depreciation

A word of warning: Most tax preparation services do not suggest trying to use the Actual Mileage deduction unless more than 50% of your driving per year is for work.

Will I need more forms?
Is the sky blue? With the IRS there is always a need for more paperwork. I can’t stress enough the need for you to first and foremost keep good records. If you get audited, you’ll need to be able to prove either your standard or actual mileage deductions are accurate.

What kind of forms you might need to fill out will depend on the nature of your travel and your relationship to your organization. If you are an independent contractor or self-employed, you will keep these deductions in your Schedule C. Besides that, it largely depends on if your company reimburses you something or not.

I bought a brand new car for work travel. What should I do?
Having that new car is really nice, and then you drive it off the lot and it is hit with depreciation. According to some experts, a car loses a significant amount of value to depreciation before it has a first oil change. If you bought a new car in 2018, and if you drive this new car for work, you can deduct some of that depreciation from your taxable income just like mileage. That figure appears to be a maximum of $3,160 for a car (passenger vehicle) and $3,560 for a truck or panel van.

What else do I need to know?
That nicely wraps it up. One other thing to note, these deductions are only for those individuals who operate four or fewer cars/trucks/vans for business purposes. More than four is defined by the IRS as a Fleet and disqualifies the owner from these deductions. The key to deducting mileage correctly is to keep good documentation, and itemizing correctly. If you are having trouble figuring it out, consider consulting the help of a tax professional. Overall, the standard rate will be the one used by most people.

Recent Posts

  • What Is The Difference Between An Accountant And A CPA
  • Organizations That Can Revoke An Individual To Practice As A CPA
  • Financial Planning to Protect Individuals With Disabilities and Their Families
  • Hire My Child As An Independent Contractor, Employed By Parent
  • How Are Trusts Taxed For Income Tax Purposes

Archives

  • December 2019
  • November 2019
  • August 2019
  • July 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014

Office Locations In Maryland

5100 Buckeystown Pike Ste 250,
Frederick, MD 21704

17 W Jefferson St Ste 007,
Rockville, MD 20850

Office Location In Virginia

1420 Spring Hill Rd Ste 600,
McLean, VA 22102

About BFS

Visit us in McLean Virginia, Frederick or Rockville, Maryland (Washington DC Metro Area)

Phone toll free: (855) 557-2222
Fax: (855) 557-2222
E-mail: info@bfswebsite.com

Business & Financial Solutions is a tax and accounting CPA firm. Our offices are located in Fairfax County, VA and Montgomery and Frederick Counties, MD. Our company is highly motivated in helping individuals and companies (private and non-profit) become successful in start-ups. BFS offers assistance with ongoing small to mid-size business management, consulting, accounting and a variety of tax services.

Maryland, Virginia, Washington DC
SiteLock
back up
© Copyright 2019 Business & Financial Solutions