The Internal Revenue Service (IRS) released Notice 2020-05 providing the 2020 standard mileage rates. Beginning January 1, 2020, the standard mileage rates for the use of a car (van, pickup or panel truck) will be:
- 57.5 cents per mile for business miles driven, down from 58 cents in 2019
- 17 cents per mile driven for medical or moving purposes, down from 20 cents in 2019
- 14 cents per mile driven in service of charitable organizations, unchanged from 2019
Beginning January 1, 2020:
- A taxpayer must use 27 cents per mile as the portion of the business standard mileage rate treated as depreciation.
- $54,000 is maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan.
- For employer-provided vehicles, employers may use the fleet-average valuation rule or the vehicle cents-per-mile valuation rule. $54,000 is the maximum fair market value (FMV) of cars, trucks and vans first made available to employees for personal use.