The Internal Revenue Service announced on December 14, 2023 an increase in the standard mileage rates for 2024.
The new standard mileage rate for business travel will be 67¢ per mile. The rate for deductible medical travel and moving expenses for active-duty military members will decrease by 1¢ to 21¢ per mile. The rate of 14¢ per mile for charitable organizations will remain the same for 2024.
To utilize the standard mileage rate for a car you own, you have to choose to use this method in the first year the car is available for business use. If you want to use the standard mileage rate for a car you are leasing, you must use it for the entire lease period.
While these changes will be helpful for many, it is important to note that taxpayers always have the option of calculating the actual costs of using their vehicle instead of using the standard mileage rates.
Too often this deduction is overlooked because proper documentation was not followed. Check out Tips to Maximize Your Mileage Deduction for a few tips to ensure you receive the full benefit of this tax deduction.
If you have any questions, contact an Alloy Silverstein advisor today!
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