A lot of people commonly overlook the car & truck deductions because they are either unaware of the deduction or it is too complicated for them to figure out! The IRS lets taxpayers take a deduction based on actual expenses or a standard mileage rate for driving for business purposes. For 2023 the rate is 65.5 cents per mile – this has gone up from recent years and it is often easier for a business owner to track miles and take the standard mileage deduction instead of keeping receipts for oil changes, tires, gasoline, etc.
Figuring out your business mileage deduction appears to be straightforward, but there are a lot of rules and complexities when determining your deduction.
Larson CPA is here for all your tax and accounting needs – reach out to us to see how we can help!