2019 IRS Mileage Rate Announced - Important for Ride Share Drivers!
On December 14, 2018, the Internal Revenue Service issued the 2019 standard mileage rates used to calculate the deductible costs of operating an automobile for business or medical purposes.
Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
58 cents per mile driven for business use (up 3.5 cents from 2018).
20 cents per mile driven for medical use (up 2 cents from 2018).
With the announcement, the IRS also provided a reminder that, Under the Tax Cuts and Jobs Act, taxpayers can no longer claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. These expenses were commonly deducted by property managers with large territories in the past.
The IRS announcement is HERE.
Why do we need to know?
Calculating household income When calculating affordable housing income, households may deduct business mileage from income for self-employment. NOTE: this is a common deduction for drivers with UBER, Lyft and other app-based ride share services.
Calculating adjusted income For HUD, RD and other programs where rent is based on adjusted income, miles driven for medical purposes may be deducted as a medical expense.