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May 25, 2018

Revised 2018 Optional Standard Rates

The changes apply for years beginning after 2017.
The recent tax legislation suspended (2018-2025) the deduction for miscellaneous itemized deduction subject to the 2% of adjusted gross income. Among the items that are not deductible during the suspension period are unreimbursed employee travel expenses and moving expenses. The notice states that the standard business mileage rate (54.5 cents per business mile)  does not apply during the suspension period. The standard business mileage rate will only apply to deductions in determining adjusted gross income.

The maximum standard automobile cost for computing the allowance under a fixed and variable rate plan are $50,000 for passenger automobiles (including trucks and vans) placed in service after December 31, 2017.

The changes can be found in Notice 2018-42

Read more from Income Tax, etc.

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