Standard Mileage Rates
Beginning January 1, 2019 the standard mileage rates for the use of a car (vans, pickups or panel trucks) will be:
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58 cents per mile for business miles driven, up from 54.5 cents for 2018
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20 cents per mile driven for medical or moving purposes, up from 18 cents for 2018
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14 cents per mile driven in service of charitable organizations, unchanged from 2018
Corporate Tax Rates
The corporate tax rate was lowered to a flat 21% on all profits in 2018. This remains the same for the 2019 tax year.
Meals & Entertainment
There is no change in Meals & Entertainment deductions from 2018 to 2019.
Minimum Wage
Most state minimum wages have remained the same or increased slightly. Please consult the following link for State and Federal Minimum Wage Rates.
Qualified Business Income Deduction
The new qualified business income deduction provision in the Tax Cuts and Jobs Act (TCJA) gives a 20% deduction for qualified business income. The goal is to improve the benefits for flow-through entities and sole proprietors, who do not receive the major tax cuts that were given to C corporations.
Whether the rule meets the goal remains to be seen. Any strategies you consider should be given a good dose of caution, because there is still a lack of clarity and guidance into the definitions and how these deduction rules are to be applied.
