Can I deduct mileage and gas in 2019?

November 08, 2019 by Steve Banner, EA, MBA
speedometer

The Tax Cut and Jobs Act of 2017 that took effect in 2018 changed the rules for deducting mileage and gas expenses. From 2018 until 2025, only Armed Forces reservists, qualified performing artists, and some government officials can claim their job-related car expenses. This means that most employees who drive their own car for work purposes and are not repaid for their costs cannot deduct their car expenses.

But the good news is that there has been no change to these rules for self-employed taxpayers. They can continue to deduct their car expenses at the standard rate of 54.5 cents per mile driven for business. Or, they can deduct the amount of their actual expenses multiplied by the percentage of the car’s use for business. Taxpayers who own rental properties can also use this rate for any mileage incurred relating to their rental activities, such as driving from their home to the rental property to perform necessary maintenance or repairs.

There is also good news in other areas. The mileage and gas deduction for medical and charitable purposes was not changed. Taxpayers who drive for medical purposes such as doctor visits can deduct their mileage at the standard rate of 18 cents per mile. Or, they can choose to deduct the actual cost of gas and oil for their medical-related journeys.

Taxpayers can deduct out-of-pocket expenses such as driving their car while doing volunteer work for a charitable organization. They can choose between the standard rate (14 cents per mile) or the actual cost of gas and oil related to the miles they drove for charitable purposes.

Expenses for tolls and parking can also be deducted when a car is used for your small business, rental properties, medical or charitable purposes.

Finally, it is important for anyone who thinks they may meet any of the above conditions to make sure to keep accurate and contemporaneous mileage logs as well as receipts for their car expenses. This is a frequently audited deduction, and without good documentation the amount claimed will not likely be allowed.

Tags: mileage

SEARCH

 

Steve Banner, EA, MBA
Tax Content Developer

 

Steve Banner began his career in the field of income tax in 1977 and has since gathered business experience in a variety of countries and cultures. In addition to the United States, he has lived and worked for extended periods in Australia, Saudi Arabia, Canada, and Sweden. Along the way he studied Adult Education and earned a Bachelor of Education, Master of Educational Administration, and MBA. He joined TaxAudit in 2016, where he is a Tax Content Developer.


 

Recent Articles

Percentage sign with dollar bill in the background
The interest rate charged by the IRS on back taxes is the federal short-term rate plus 3%. The rate is set every 3 months.
State Taxes Sign
Yes, TaxAudit, the exclusive provider of TurboTax Audit Defense, represents members through the completion of any state or federal income tax audit.
Debt Burden Cartoon
Yes, there are legitimate tax relief companies that can help you reduce your tax debt. However, there are scam companies as well. Learn what to look out for.
New Roof Being Installed
Costs for home improvements, such as a new roof, add to the cost basis of your property and will reduce your taxable gain when you sell your home.
This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.