Move-related vehicle expense
The new law suspends the deduction for tax years beginning after Dec. 31, 2017, through Jan. 1, 2026. During the suspension, no deduction is allowed for use of an auto as part of a move using the mileage rate listed in IRS Notice 2018-03.
This does not apply to members of the Armed Forces on active duty who move related to a permanent change of station.
Unreimbursed employee expenses
The Act also suspends all miscellaneous itemized deductions subject to the 2 percent of adjusted gross income floor. This change affects unreimbursed employee expenses such as uniforms, union dues and the deduction for business-related meals, entertainment and travel.
For additional guidance, see IRS Notice 2018-42.
Standard mileage rates for 2018
The standard mileage rates for the use of a car, van, pickup or panel truck for 2018 remain:
- 54.5 cents for every mile of business travel driven, a 1 cent increase from 2017.
- 18 cents per mile driven for medical purposes, a 1 cent increase from 2017.
- 14 cents per mile driven in service of charitable organizations, which is set by statute and remains unchanged.
Increased depreciation limits
The recent legislation also increases the depreciation limitations for passenger autos placed in service after Dec. 31, 2017, for purposes of computing the allowance under a fixed and variable rate plan. The maximum standard automobile cost may not exceed $50,000 for passenger automobiles, trucks and vans placed in service after Dec. 31, 2017.
- The Tax Cuts and Jobs Act includes changes to moving, mileage and travel expenses - June 7, 2018
- Tax Reform: Changes to Depreciation Affect Businesses Now - May 4, 2018
- Nine Facts About the Adoption Credit - January 18, 2018