What are the current rates for the standard mileage deduction?
The current rates are as follows: Due to high gas prices, the IRS recently announced an increase to the standard mileage deduction for the second half of 2022. The rates go up four cents per mile from July until the end of the year. Miles you drove through June still go by the original rate.
How do I deduct mileage on my taxes?
For example, if 70% of the miles you drive are for business, and the other 30% are for personal, you’ll generally be able to apply 70% of your expenses to your deduction. You’ll report your expenses on one of two tax forms. If you’re self-employed, you’ll add the information to your Schedule C.
Do rental cars qualify for the standard mileage deduction?
No, rental cars don’t qualify for the standard mileage deduction. Since you don’t own the car, you don’t have the same types of expenses. You would need to deduct the actual expenses of the rental. What does the standard mileage rate cover?