Standard Mileage Rates to Increase in 2022
The IRS recently issued Notice 2022-03, which increases the rate by which taxpayers may compute their deductions for costs of using an automobile for business purposes for the 2022 tax year. The rate will be 58.5 cents per mile, an increase of 2.5 cents per mile from 2021.
The notice also provides the standard mileage rate for use of an automobile for purposes of obtaining medical care under Sec. 213. This rate will be 18 cents per mile, up 2 cents from 2021. The rate of 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 to a permanent change of station. The rate for providing services to a charitable organization remains at 14 cents per mile.
The portion of the business standard mileage rate that is treated as depreciation for purposes of calculating reductions to basis remains at 26 cents per mile for 2022.
Additionally, the notice provides the maximum standard automobile cost under a fixed-and-variable-rate (FAVR) plan of $56,100 for automobiles (including trucks and vans), up $5,000 from 2021. The same amount also applies as the maximum fair market value of automobiles (including trucks and vans) first made available in calendar year 2022 for purposes of the fleet-average valuation rule in Regs. Sec. 1.61-21(d)(5)(v) and the vehicle cents-per-mile rule under Regs. Sec. 1.61-21(e).