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Standard Mileage Rate Increase!
To all those who put a lot of miles on their vehicle for their real estate business,
The IRS has increased the optional standard mileage rates to 62.5 cents per mile for the rest of 2022 (starting 7/1). The rates from 1/1/22 - 6/30/22 remains at 58.5 cents per mile. This was "to better reflect the recent increase in fuel prices."
To calculate your deduction, you'll need to track your "business mileage" and multiply by the applicable standard mileage rate based on when those miles were driven. At Real Books, our favorite mileage tracking apps that virtually automate this task for you are "Mile IQ" and "Quickbooks Mobile App" (both require a subscription).
A couple of important points:
- Using the standard mileage rate in the first year of business use is considered an election to exclude the car from depreciation.
- Commuting miles are considered personal.
- Employees cannot use the standard mileage rate for unreimbursed travel through 2025.
https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022