Your business mileage tax deduction just became more valuable for the rest of 2022 after a recent announcement by the IRS. Effective July 1st, the IRS’s business mileage rate is increased by 4 cents, to 62.5 cents per mile, while the medical and moving mileage is also increasing by 4 cents, to 22 cents per mile. The previous mileage rates applied through June 30th.
Below are some examples of business-related driving:
- Driving to the post office
- Driving to the bank to deposit business money
- Driving to the office supply store or other stores to buy supplies for the office
- Driving around town to drop off marketing supplies to referrals
- Driving to lunch to meet a business partner to discuss business
- Driving to a business dinner to discuss business
- Driving to a business conference such as a continuing education event
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.