On 12/31/19 the IRS published the reference amounts for mileage rates for 2020. Their announcement:
Beginning on January 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019,
- 17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and
- 14 cents per mile driven in service of charitable organizations.
The business mileage rate decreased one half of a cent for business travel driven and three cents for medical and certain moving expense from the rates for 2019. The charitable rate is set by statute and remains unchanged.
The business rate is down from 58.0 cents in 2019 and up from 54.5 in 2018.
The standard rate for business is based on their analysis of the fixed and variable costs of operating a vehicle. The medical & moving rate is based on variable costs of operation.
Rates were published in IR-2019-215: IRS issues standard mileage rates for 2020.
(Cross-post from my other blog, Nonprofit Update.)