If you use your personal vehicle for business purposes, you may be able to deduct the cost of those miles on your taxes. The IRS sets a standard mileage rate that you can use to https://bbrencontre.com/ calculate your deduction. For 2023, the standard mileage rate for business use is $0.655 per mile.
There are a few things to keep in mind when using the standard mileage rate. First, you can only use it for miles that are actually used for business purposes. This doesn’t include commuting miles or personal miles. Second, you can only use the standard mileage rate if you don’t have any documentation to support your actual expenses. If you do have documentation, you may be able to deduct your actual expenses instead of using the standard mileage rate.
To use the standard mileage rate, you simply multiply the number of business miles you drove by the rate. For example, if you drove 10,000 business miles in 2023, you could deduct $6,550 on your taxes.
The standard mileage rate is a convenient way to calculate your business mileage deduction. It’s easy to use and doesn’t require any documentation. However, if you have documentation to support your actual expenses, you may be able to deduct more money by using the actual expenses method.
Here are some additional things to keep in mind about business mileage rates:
- The standard mileage rate is set by the IRS each year.
- The standard mileage rate is different for business, medical, and moving purposes.
- You can only use the standard mileage rate if you don’t have any documentation to support your actual expenses.
- You can only use the standard mileage rate for miles that are actually used for business purposes.
- You can’t use the standard mileage rate for commuting miles or personal miles.
