Question

Lara uses the standard mileage method for determining auto expenses. During 2019, she used her car as follows: 18,400 miles for business, 3,680 miles for personal use, 5,520 miles for a move to a new job, 1,840 miles for charitable purposes, and 920 miles for medical visits. Presuming that all the mileage expenses are allowable (i.e., not subject to percentage limitations), what is Lara's deduction for:

Answer 1

Solution -

The IRS mileage deduction rate for 2019 (Notice 2019-02)

58 cents per mile for business miles driven
20 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

A) Business mileage deduction:

= 18,400 miles * $0.58 per mile

= $10,672

B) Moving mileage deduction:

= 5,520 miles * $.20 per mile

= $1,104

C) Charitable mileage deduction:

= 1,840 miles * $0.14 per mile

= $258

D) Medical mileage deduction:

= 920 miles * $0.20 per mile

= $184