As of December 15th, 2023, the IRS issued the 2024 optional standard mileage ratesused to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. (Notice 2024-08).
Beginning January 1st, 2024, the standard mileage rates for the use of a vehicle will be:
The 2024 optional standard mileage rate for businesses will increase to 67 cents per mile, up by 1.5 cents per mile from the 2023 mileage rates. The standard mileage rate for medical, as well as specifically allowed moving purposes, has decreased by 1 cent to 21 cents. Each year, these two rates are adjusted based on an annual study of various costs of operating an automobile. The standard mileage rate for charitable service will also remain the same at 14 cents per mile since this rate is set by statue.
These rates also apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles according to the IRS Notice 2024-08.
As always, taxpayers continue to have the option to calculate the actual costs of using their vehicle, instead of using the standard mileage rates. It also is essential to know that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses and cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station.
These new standard mileage rates should be incorporated when filing for the 2024 tax year.
If you need any help determining which changes affect your business, we would be happy to assist you. Please do not hesitate to call our office or email your respective tax preparer for help.
