Just before Christmas, the IRS has proved a bringer of gifts for taxpayers who drive a car for business.
The IRS announced the federal standard mileage rates for 2022:
The IRS has increased the standard mileage rate for business driving during 2022 to 58.5 cents per mile. This is a 2.5 cent increase over the rate for 2021. Driving costs have gone up, so the rate has increased. The IRS recalculates the standard mileage rate for business each year using an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas,¬†and oil. To determine your deductible business mileage expenses using the standard rate, you simply multiply your business miles by the rate. For example, if you drive 10,000 business miles in 2021 you'll have a $5,850 deduction. In contrast, if you drove 10,000 business miles in 2021, you could only deduct $5,600. The standard rate for driving for charitable purposes is 14 cents per mile. The IRS is not allowed to adjust this rate.