Tax Minute

2022 TAX INFLATION ADJUSTMENTS (1)

Every year there are numerous provisions in the tax code that change due to the consumer price index adjustments or other inflation indicators. The one that most clients are interested in is the standard mileage deduction for business related travel. Effective January 1, 2022, the standard mileage rate for business use of a car, van, SUV or pick up will be 58.5 cents per mile, which is up 2.5 cents from last year. As with past years, you can only claim the standard mileage rate for a maximum of 4 vehicles that are used simultaneously in any business. In addition, you can't use the standard mileage rate if you've claimed a Section 179 deduction for that vehicle in any previous year. The standard mileage rate for medical and moving purposes is 18 cents per mile, which is up 2 cents from last year. The deduction for miles driven in service of charitable organization is set by statute and remains unchanged from last year at 14 cents per mile. Tune in tomorrow to hear about some additional tax inflation adjustments.

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