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Does Your Church Owe A Tax on Its Parking Lot? by Dr. Wyatt McDowell, JD LLM

Christian Mission v. Passaic City, 30 NJ Tax 357 (2018) by Dr. Wyatt McDowell, JD LLM

 
 

2019 Information Update

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STANDARD MILEAGE RATES FOR 2019

On December 14, 2018, the Internal Revenue Service issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 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 and 2 cents for medical and certain moving expense from the rates for 2018. The charitable rate is set by statute and remains unchanged.

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RETIREMENT PLAN CONTRIBUTION LIMITS FOR 2019

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000.

The limit on annual contributions to an IRA, which last increased in 2013, is increased from $5,500 to $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.

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TRAVEL PER DIEM RATES FOR 2019

Effective October 1, 2018, the IRS issued the special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home.

For purposes of the high-low substantiation method, the per-diem rates are $287 for travel to any high-cost locality and $195 for travel to any other locality within the continental United States.

The amount of these rates that is treated as paid for meals is $71 for travel to a high-cost locality and $60 for travel to any other locality.

Since 2012, incidental expenses have included only fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. The per-diem rate for the incidental-expenses-only deduction remains unchanged at $5 per day for any locality of travel.