The Internal Revenue Service recently provided information to taxpayers and employers about changes from the Tax Cuts and Jobs Act that affect:
- Move related vehicle expenses
- Un-reimbursed employee expenses
- Vehicle expensing
Changes to the deduction for move-related vehicle expenses
The Tax Cuts and Jobs Act suspends the deduction for moving expenses for tax years beginning after Dec. 31, 2017, and goes through Jan. 1, 2026. Thus, during the suspension no deduction is allowed for use of an automobile as part of a move using the mileage rate listed in Notice 2018-03. This suspension does not apply to members of the Armed Forces of the United States on active duty who move pursuant to a military order related to a permanent change of station.
Changes to the deduction for un-reimbursed employee expenses
The Tax Cuts and Jobs Act also suspends all miscellaneous itemized deductions that are subject to the 2 percent of adjusted gross income floor. This change affects un-reimbursed employee expenses such as uniforms, union dues and the deduction for business-related meals, entertainment and travel.
Thus, the business standard mileage rate listed in Notice 2018-03, which was issued before the Tax Cuts and […]