NEW MILEAGE RATE effective July 1st
Beginning July 1, 2022, the IRS has increased the standard mileage rate for business use to 62.5 cents per mile. That's a 4 cent increase from the current rate of 58.5 cents per mile. The new rate will remain in effect throughout 2022.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage. However, taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
The mileage rate for medical travel expenses has also increased 4 cents, making the new rate 22 cents beginning July 1st thru the remainder of the year. However, the mileage rate for volunteer and charitable organizations remains unchanged at 14 cents per mile as it is set by statute.
To ensure the deductibility of your mileage deductions, be sure to maintain the proper mileage records. You can contact our office for a mileage log or for more guidance on your business auto deductions.