Businesses will soon be able to deduct more under the standard mileage rate - Crawford Ellenbogen

Business owners are aware that the price of gas is historically high, which has made their vehicle costs soar. Fortunately, the IRS is providing some relief. The tax agency announced an increase in the optional standard mileage rate for the last six months of 2022. Taxpayers may use the optional cents-per-mile rate to calculate the deductible costs of operating a vehicle for business. From July 1–Dec. 31, 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up from 58.5 cents per mile for Jan. 1–June 30, 2022. Taxpayers also have the option of calculating the actual costs of using their vehicles rather than using the standard mileage rate. Contact us to learn more.