In this week’s #TuesdayTip, a review of the 2024 mileage and passbook rates.
As of January 1, 2024, The IRS has rolled out the revised standard Medical mileage rate for residents receiving mileage reimbursements related to medical treatment. The rate now stands at 21 cents per mile, marking a decrease of one cent from the 2023 rate.
The 2024 Passbook rate is also here. The new HUD imputed Passbook rate for assets exceeding $50,000, will see an increase to 0.40%, up from the previous rate of 0.06%. However, there have been reports of TRACS generating errors when owners or agents attempt to switch the passbook rate from 0.06% to 0.40%. HUD acknowledges this issue and assures that guidance on the new passbook rate will be forthcoming, detailed in an upcoming notice.
This brings us to the numerous calls we received in December regarding TRACS issuing errors based on HOTMA changes. Owners and agents found themselves unable to implement these changes until their software became 203A (HOTMA) compliant. While HUD claims to have resolved the December issues, challenges may persist before everything is seamless.
To avoid errors, owner/agents are strongly advised to scrutinize tenant and voucher data for accuracy before submitting vouchers each month. Should assistance be required, don’t hesitate to reach out to your contract administrator. In these uncertain times, remember that we are all in this together, eagerly awaiting further guidance and forms from HUD.
