How Much Of A Brand-new Vehicle Can You Deduct From Your Tax Bill?

For the second half of 2022, the IRS raised the optional standard mileage rate. If business vehicle owners take advantage of the new rules, they could save a lot of money on their taxes. Taxpayers ought to be aware of the nuances of vehicle depreciation and mileage deductions. Automobiles, SUVs, and pickup trucks used for business purposes frequently qualify for a tax deduction for their operating costs. The IRS standard mileage rate, which was 62.5 cents per mile in the second half of 2022, can be used to calculate these costs. Taxpayers can also add up the actual costs of using their vehicles for business, such as gas, oil, and repairs. Regardless of whether an employee or a company owns those vehicles, the method for claiming the deduction is different.