As an accountant, our job is to help your business claim all the applicable deductions your operation qualifies for on your taxes. These deductions can help you save money on your taxes every year, so they’re a valuable thing to identify and keep track of.
One standard business deduction you can take is for mileage. On your taxes, you can deduct a certain number of cents for every mile you drive for business-related purposes. This rate is set by the IRS, and it can change from year to year.
For the year 2022, the IRS recently announced that the standard mileage rate will be 58.5 cents for every mile driven for business use. This is up 2.5 cents from the accepted rate for 2021.
Since the standard mileage rate has increased substantially, as your accountant, we want to stress how important it is to keep track of your business’ mileage. This can be a valuable deduction come tax time, and it can save you a lot of money, especially if driving is a big part of your business’ operations.
We’re here to help with any tax questions and concerns you have, so if you want to know more about how this change to the standard mileage rate affects your business and your taxes, we’re here to talk. Contact us today to speak with an accountant on our team.