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Mileage Rate Increases Effective July 1, 2022


Per e-News for Tax Professionals:

"The IRS this week announced an increase in the optional standard mileage rate for the final six months of 2022. Taxpayers may use the optional standard mileage rate to calculate the deductible costs of operating an automobile for business and certain other purposes. Beginning July 1, the rates are 62.5 cents per mile for business use of an automobile and 22 cents per mile for costs of using an automobile as a medical or moving expense."

So if you use the standard mileage rate for calculating business or medical vehicle use, you need to track 2022 mileage through 6/30/22, and from 7/1/22 - 12/31/22, separately.

Note: the standard mileage rate does not apply if you use the actual expense method or if you have taken depreciation on the vehicle.

As always, please contact me before taking any action based on this or any other information posted here.

"A stitch in time saves a bird in hand."