Taxable Talk

This morning, the IRS announced the 2024 standard mileage rates for automobile usage.  Those rates will be:

• 67ȼ per mile for business use, up from 65.5ȼ per mile in 2023;
• 21ȼ per mile for medical purposes, down from 22ȼ per mile in 2023; and
• 14ȼ per mile for miles driven in service of charitable organizations (set by statute and unchanged for 2024).

I question how the annual study showed that any automobile expenses are less than in 2023, but the IRS conducts a study and that’s what the results show nationally.  Here in Nevada, costs have definitely risen from 2023 but “it is what it is.”

If you do use a car for business, remember to keep a mileage log (or use an app).

The IRS announced on December 29th the standard mileage rates:

• $0.665/mile for business use (up from $0.635/mile as of July 1, 2022);
• $0.22/mile for medical/moving for active-duty members of the Armed Forces; and
• $0.14/mile in service of charitable organizations.

These rates do apply to electric and hybrid vehicles along with gasoline and diesel vehicles.

The IRS announced today that the standard mileage rate for the second half of 2022 will be $0.625/mile, up from $0.585/mile.  As the IRS notes:

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2022. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. For travel from Jan. 1 through June 30, 2022, taxpayers should use the rates set forth in Notice 2022-03.

“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” said IRS Commissioner Chuck Rettig. “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.”

If you use the standard mileage rate, you will need to correctly report your business mileage for each half of the year.  I strongly suggest you take a picture of your odometer at the end of the day on June 30th (or the beginning of the day on July 1st) and email that to yourself so you can prove to the IRS your total mileage for each half of the year.

The official IRS Announcement is here.

A week ago the IRS announced the 2021 standard mileage rates:

• $0.56 per mile for business use (was $0.575 per mile in 2020);
• $0.16 per mile for medical/moving (was $0.17 per mile in 2020); and
• $0.14 per mile for service of charitable organizations (unchanged from 2020).

These rates (except for the charitable driving rate) come from a study that the IRS has conducted every year determining the costs of operating cars. The charitable mileage rate is set by statute. With gasoline and insurance costs down in 2020, the standard mileage rates fall for 2021.

The IRS today announced the standard mileage rates for 2018:

• $0.545/mile for business miles driven (up from $0.535/mile in 2015);
• $0.18/mile for medical or moving purposes (up from $0.17/mile in 2015); and
• $0.14/mile in service of a charitable organization (unchanged; set by statute).

You can either use this standard mileage rate or use actual expenses. Either way, it’s important to keep a mileage log!

The IRS announced this morning the standard mileage rates for 2010. They are:

• $0.50/mile for business miles ($0.55/mile in 2009)
• $0.165/mile for medical and moving ($0.24/mile in 2009)
• $0.14/mile for charitable purposes (unchanged; set by statute)

The details are in Revenue Procedure 2009-54.