The Basics on Standard Mileage Deductions
Audio version available here:
Length: approx. 1 min. 5 sec.
Welcome to the XQ CPA Tax Day Checklist, a series sharing tax tips every day leading up to the April 15th tax filing deadline. Today, we will be talking about auto deductions. Do you have a vehicle you purchased or leased for your business? You can actually write it off as a deduction on your 2023 tax return! There are two auto deduction methods you can choose from: Standard Method and Actual Method.
The standard method, also known as the standard mileage rate, is determined by the standard mileage deduction for business miles driven set by the IRS. For 2023, the rate is 65.5 cents per mile. A business mile can be justified as any trip related to your business, but the origin must be your principal place of business. This does not include your home unless you use it as a home office.
In order to claim this deduction, you will need an accurate mileage log to substantiate with the IRS.
Want more tax tips? XQ CPA has all the latest and greatest tax tips and business news for 2023 tax filing. Tune in tomorrow to learn about the auto deduction Actual Method.
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