Changes in Standard Mileage Rate for 2022
When deducting vehicle business expenses, the IRS allows taxpayers to use a standard mileage rate instead of actual vehicle expenses if they choose so. The IRS updates this mileage rate yearly to reflect gas prices and rising costs, the following changes have occurred for 2022.
The mileage rate from January 1 to June 30, 2022:
- Business rate- 58.5 cents per mile (up from 56 cents for 2021)
the depreciation portion of this rate is 26 cents per mile (same as 2021)
- Charitable rate-14 cents per mile (same as 2021)
- Medical and moving rate-18 cents per mile (up from 16 cents for 2021)
The mileage rate after July 1, 2022:
- Business rate- 62.5 cents per mile (increase from Jan 1, 2022)
depreciation portion of this rate is 26 cents per mile
- Charitable rate-14 cents per mile (no change)
- Medical and moving rate-22 cents per mile (increase from Jan. 1, 2022)
If you would like to learn more or to set up a consultation call Marlies Y Hendricks CPA PLLC at either 716-694-3500 or 910-769-8730.
The above information is of a general nature only and should not be relied upon for specific situations.