The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating a vehicle.
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.
There are four types of driver reimbursement models: IRS business mileage reimbursement rate, a fixed allowance, the Fixed and Variable Reimbursement Rate (FAVR), and a hybrid model that uses the FAVR guidelines but delivers the driver payment in a cents-per-mile model.
While fleets typically gravitate toward company provided models, there are legitimate reasons they might want to consider utilizing a reimbursement program. However, there are a number of caveats fleets should consider.
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.
It’s every fleet manager’s responsibility to develop a fair, equitable, but proper personal use charge policy. There are a number of ways to do so to make certain that both the driver and the company are treated fairly.
While expense fraud related to mileage is often unintentional, whether it’s deliberate or not it can cost companies with fleets millions of dollars in overpayments. The good news is there are simple ways to combat it.
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.
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