The Internal Revenue Service has issued their 2019 standard mileage rates. Used these rates to calculate the deductible costs of operating your food truck. As of Jan. 1, 2019, these 2019 standard mileage rates are for the use of your food truck or other vehicles used to operate your your mobile food business.
2019 Standard Mileage Rates For Food Trucks
- 58 cents per mile driven for business use, up 3.5 cents from the rate for 2018.
- 20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018.
- 14 cents per mile driven in service of charitable organizations.
The business mileage rate increased 3.5 cents for business travel driven from the rates for 2018. The charitable rate is set by statute and remains unchanged.
It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, with exemptions. Get more details at Notice-2019-02.
2019 Fuel Prices
GasBuddy predicts that 2019 will feature a yearly national average of $2.70 per gallon. This represents a 3 cent drop versus 2018. However they warn that the national average could surge to over $3 per gallon as soon as May. This data is based on the 2019 Fuel Price Outlook released by GasBuddy.
Some highlights from GasBuddy’s 2019 Fuel Price Outlook include:
- The nation’s yearly gasoline bill will fall to $386 billion dollars. A drop of $2.5 billion over last year as the average household sees their annual gasoline spending fall slightly to $1,991, down $25 from 2018.
- The national average is forecast to rise as much as $1 per gallon from a low in January. Prices may peak in May, but economic jitters could weigh heavily on where gas prices go in 2019.
- Over 90% of the country’s largest metro areas are at risk for seeing average prices hit $3 per gallon. Including:
- Los Angeles
- New York City
- San Francisco
- Washington, D.C
Taxpayers also have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
The Bottom Line
These and other requirements are described in Rev. Proc. 2010-51. Notice 2018-03, posted on IRS.gov, contains the standard mileage rates. These are the amounts a taxpayer must use in calculating reductions. It also includes the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
If you have any additional questions relating to these 2019 standard mileage rates, speak with your accountant.