The Tax Cuts and Jobs Act made a lot of changes to the rules for deducting business expenses beginning in 2018. Recently, the IRS provided information about changes to mileage expense deductions: Specifically, rules that affect move-related vehicle expenses, un-reimbursed employee expenses and vehicle depreciation.
The standard mileage rate for the use of a car, van, pickup or panel truck for 2018 is 54.5 cents for every mile of business travel, a 1 cent increase from 2017.
The Tax Cuts and Jobs Act suspends the deduction for moving expenses for tax years after Dec. 31, 2017, and no deduction will be allowed for use of an automobile as part of a move.
The law also suspends miscellaneous itemized deductions that are subject to the 2 percent of adjusted gross income floor. This change affects un-reimbursed employee travel expenses, business meals, union dues and uniforms.
Finally, The Tax Cuts and Jobs Act increased the depreciation limitations for passenger automobiles for 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. Previously, the maximum standard automobile cost was $27,300 for passenger automobiles and $31,000 for trucks and vans.