After decreasing two years in a row, the rate by which taxpayers
may compute their deductions for costs of using an automobile for business
purposes will go up to 58.5 cents per mile for the 2022 tax year, an increase
of 2.5 cents per mile over the 2021 rate.
2022-03, in which the IRS announced the update on Friday, also provides
the standard mileage rate for use of an automobile for purposes of obtaining
medical care under Sec. 213, which will be 18 cents per mile, up 2 cents from
2021. The rate for providing services to a charitable organization remains the
same, set by statute at 14 cents per mile (Sec. 170(i)).
The same rate as for medical care, 18 cents per mile, also applies
to the deduction for moving and storage expenses under Sec. 217(g) by members
of the armed forces on active duty who move pursuant to a military order and
incident to a permanent change of station.
Taxpayers may use the business standard mileage rate for their use
of an automobile as an ordinary and necessary business expense. Or they may
claim actual allowable expense amounts if they substantiate the expenses,
including by maintaining adequate records or other sufficient evidence.