The standard rate will increase to 58.5 cents per mile, an increase of 2.5 cents. If you use the standard rate, you must reduce the basis of your ride by a depreciation component of $.26 a mile. So keep that detailed log. Business vehicle expenses are an IRS red flag like Use of Home as Office, and I Am A Real Estate Professional.
You can claim parking and tolls-so keep all receipts even on rental cars. But you can’t add the cost of fuel or repairs. Nor can you use the rates if you depreciated or expensed your car in the past.
One more time: Keep detailed records. It is hard to catch up in December.
Oh, did I mention that charity travel is $.14 a mile and medical travel is $.18 a mile (up $.02)
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