The IRS has increased the optional standard mileage for business, medical, and moving mileage.
Beginning July 1, 2022, taxpayers may use the mileage rates to deduct the costs of operating automobiles for business or other qualified purposes. These changes will remain in effect for the remainder of the year.
The following is a summary of the current mileage rates compared to the new ones being implemented on July 1, 2022.
* The new rate for medical or moving mileage is only available for active-duty members of the military those who move pursuant to a military order and incident to a permanent change of station.
According to the IRS, the new rates apply to deductible transportation expenses paid or incurred for business, medical, or moving expense starting on or after July 1, 2022. The rates also apply to mileage reimbursement or allowances that are both 1) paid to an employee on or after July 1, 2022 and 2) are for transportation expenses paid or incurred by the employee on or after July 1, 2022.
Please note the Notice 2022-03 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
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