The Internal Revenue Service (IRS) released Notice 2018-42 providing information to taxpayers and employers about changes from the Tax Cuts and Jobs Act to the deduction for move-related vehicle expenses and un-reimbursed employee expenses.
The Tax Cuts and Jobs Act suspends the deduction for:
- Moving expenses for tax years beginning after Dec. 31, 2017, and goes through Jan. 1, 2026. No deduction is allowed for use of an automobile as part of a move using the mileage rate listed in Notice 2018-03.
- Un-reimbursed employee expenses such as uniforms, union dues and the deduction for business-related meals, entertainment and travel. The business standard mileage rate listed in Notice 2018-03, which was issued before the Tax Cuts and Jobs Act passed, cannot be used to claim an itemized deduction for un-reimbursed employee travel expenses in taxable years beginning after Dec. 31, 2017, and before Jan. 1, 2026.
(Updated May 29, 2018)
The Internal Revenue Service (IRS) released Notice 2018-03 providing the 2018 standard mileage rates. Beginning January 1, 2018, the standard mileage rates for the use of a car (vans, pickups or panel trucks) will be:
- 54.5 cents per mile for business miles driven, up from 53.5 cents for 2017
- 18 cents per mile driven for medical or moving purposes, up from 17 cents for 2017
- 14 cents per mile driven in service of charitable organizations
Notice 2018-03 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
(Posted December 15, 2017)