- Our Team
January 10, 2023
The IRS has issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. In a statement issued on Dec. 29, the IRS said that beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) is:
These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles, according to the Agency.
Where the numbers come from
The IRS notes that the standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
The IRS is reminding taxpayers that under the Tax Cuts and Jobs Act, they cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Taxpayers should work with their tax advisors to make sure they are taking full advantage of the tax breaks, consistent with IRS regulations.
January 25, 2023
Even if your business has only a few employees, you may be considering outsourcing your payroll processing to a specialist. What can a payroll processing service do for you? No matter whether you outsource or not, you are still legally responsible for tax and other compliance issues. However, by hiring a qualified service provider, you’ll […]
January 25, 2023
In early January, the IRS announced that it was postponing various tax filing and payment deadlines for storm victims in the Golden State. As a result, says the Agency, affected individuals and businesses will have until May 15, 2023, to file returns and pay any taxes that were originally due during this period. This relief […]