As a US accountant to creative industry professionals, we understand that travel and varying bases is a huge factor of many creative industry jobs. Whether you’re an actor who has had to move to the other end of the country for a production contract, or a musician that is touring the US, we are expert in your tax matters.
On May 25th 2018, the IRS announced several changes in the Tax Cuts and Jobs act that affect moving, mileage and travel expenses.
US Tax on Vehicle Expenses
For tax years beginning after December 31sr 2018 until Jan1 2026, deductions for moving expenses have been suspended. This means that if you are moving, the expenses related to use of an automobile as part of a move can not be claimed on your tax return.
Mileage rates for 2018
When claiming mileage on your 2017-18 tax return, the standard mileage rates are as follows:
54.5 cents for every mile of business travel driven, a 1 cent increase from 2017.
18 cents per mile driven for medical purposes, a 1 cent increase from 2017.
14 cents per mile driven in service of charitable organizations, which is set by statute and remains unchanged.
Please note: You also have the option of calculating the actual costs of using your vehicle rather than using the mileage rates.