IRS 2024 MILEAGE RATES
Posted by DaveMoll on Jan. 5, 2024 / Subscribe 0
IRS issues standard mileage rates for 2024 (Jan. 4, 2024)
The IRS released the optional standard mileage rates for 2024. Most taxpayers may use these rates to compute deductible costs of operating vehicles for:
- business,
- medical, and
- charitable purposes.
Some members of the military may also use these rates to compute their moving expense deductions.
2024 standard mileage rates. The standard mileage rates for 2024 are:
- 67 cents per mile for business uses;
- 21 cents per mile for medical uses; and
- 14 cents per mile for charitable uses.
Taxpayers may use these rates, instead of their actual expenses, to calculate their deductions for business, medical or charitable use of their own vehicles.
FAVR allowance for 2024. For purposes of the fixed and variable rate (FAVR) allowance, the maximum standard automobile cost for vehicles places in service after 2023 is:
- $62,000 for passenger automobiles, and
- $62,000 for trucks and vans.
Employers can use a FAVR allowance to reimburse employees who use their own vehicles for the employer’s business.
2024 mileage rate for moving expenses. The standard mileage rate for the moving expense deduction is 18 cents per mile. To claim this deduction, the taxpayer must be:
- a member of the Armed Forces of the United States,
- on active military duty, and
- moving under a military order and incident to a permanent change of station.
The Tax Cuts and Jobs Act of 2017 suspended the moving expense deduction for all other taxpayers until 2026.
SOURCE: Notice 2024-08, I.R.B.: 2024-2, January 8, 2024.
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