The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating a vehicle.
There is uncertainty with regards to the taxation of mileage reporting for drivers sheltering in place.
While personal use averages 16%, outside market dynamics can cause personal use mileage to increase. For instance, when fuel prices increase, there is typically a spike in employees using fleet vehicles for personal use since the company pays for gasoline.
The Internal Revenue Service update of the depreciation limits for higher-priced passenger vehicles should have minimal impact on commercial leasing, fleet management company executives said.
The business mileage reimbursement rate for 2019 increased 3.5 cents to 58 cents on Jan. 1 after two years of minimal change, the Internal Revenue Service announced late last year.
The Internal Revenue Service has increased the business mileage reimbursement rate to 54.5 cents from 53.5 cents for 2018. The new rate will go into effect on Jan. 1.
The Internal Revenue Service has reduced the business mileage reimbursement rate for one half of a cent to 53.5 cents from 54 cents. The new rate went into effect on Jan. 1.
The Internal Revenue Service has lowered the deductible mileage rate to 54 cents per mile for business miles in 2016 down from 57.5 cents in 2015, the agency has announced.
A perennial question facing management is whether it makes business sense to provide company vehicles or to reimburse employees for the use of their personal vehicles. Some believe it will cost less, but the reality is different.
As a general rule when considering total cost of ownership (TCO), employees with high-mileage needs should be provided with a company vehicle; those with low-mileage needs should have their job function reviewed to determine if personally owned vehicles (POVs) would produce the lowest TCO through a business reimbursement program.
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