IRS Mileage Rate: How To Calculate Your Deduction

IRS Mileage Rate: How To Calculate Your Deduction

By | November 15, 2022

The IRS mileage rate for 2019 is 58 cents per mile. That means if you drove 1,000 miles for business this year, you can deduct $580 from your taxes.

To calculate your deduction, simply multiply your total business miles driven by the IRS mileage rate. So if you drove 2,000 miles this year, your deduction would be $1,160.

The IRS mileage rate is calculated based on the cost of operating a vehicle, including gas, insurance, maintenance, and depreciation. The rate is reviewed and updated annually by the IRS.

You can deduct your business miles driven from your taxes whether you use your own car or a rental car. You can also deduct miles driven for charitable purposes, medical appointments, and moving.

To claim your deduction, you’ll need to keep track of your business miles driven throughout the year. You can do this by keeping a mileage log, which you can create yourself or find online.

When you’re ready to file your taxes, you’ll need to complete Form 2106 and attach it to your tax return.

The IRS mileage rate is a great way to save money on your taxes. If you drove for business this year, be sure to take advantage of this deduction.

The IRS mileage rate for 2019 is 58 cents per mile. That means that if you drove 1,000 miles for business purposes, you could deduct $580 from your taxes.

To calculate your deduction, you’ll need to keep track of your mileage throughout the year. You can do this by using a mileage tracking app or simply by keeping a log of your trips.

Once you have your total mileage for the year, multiply it by the IRS mileage rate. This will give you your total deduction.

Remember, you can only deduct mileage for business purposes. This includes trips to clients, suppliers, or other business-related destinations. Commuting to and from work does not qualify.

If you have any questions about the IRS mileage rate or how to calculate your deduction, be sure to speak with a tax professional.

Please follow and like us:
0
fb-share-icon0
20
fb-share-icon20
Posted in Taxes ||