Aug
The IRS recently announced an increase in the standard mileage rate for the last six months of 2022. This change will apply to taxpayers who are self-employed using their automobile for their business as well as rental property owners who travel to their property to perform or oversee maintenance on the property as well as other duties pertaining to the property. It will also apply to individuals who have exceeded the 7.5% AGI floor allowing them to deduct medical expenses as an itemized deduction.
For the self-employed/rental owner taxpayers the standard mileage rate will begin at 58.5 cents per mile for mileage accumulated from January 1st through June 30th. For mileage from July 1st through December 31st the standard mileage rate will increase to 62.5 cents per mile.
Medical mileage will follow the same time schedule beginning at 18 cents per mile before transitioning to 22 cents per mile.
If you are one of our taxpayers who benefits from the mileage deductions it is imperative that you keep accurate records of your mileage. For this coming tax season we will ask for two different sets of mileage figures, those for the first half of the year and those for the second half. If you should ever be audited and have your mileage questioned, the IRS will ask to see a log of your travel so it’s important to make sure you keep one. While we don’t anticipate this change to warrant more audits of taxpayers it’s worth noting that exaggerated, frivolous, or unsubstantiated mileage is easily the first thing to get tossed out by an auditor.
Mileage rates for charitable organizations remain unchanged at 14 cents per mile.