IRS Announces Standard Mileage Rates for 2024
The IRS announced yesterday the new standard mileage rates for 2024 and they are bit higher than 2023.
The IRS announced yesterday the 2024 standard mileage rates.
As expected with recent inflation rates, the rates have increased a bit.
The rate for business use of an automobile is 67 cents a mile, the rate for the charitable use of an automobile is 14 cents a mile, and the rate for using an automobile for medical or moving purposes is 21 cents a mile.
The rate for business use is up 1.5 cents per mile from the current 2023 rate.
For automobiles a taxpayer uses for business purposes, the portion of the business standard mileage rate treated as depreciation is 27 cents per mile for 2020, 26 cents per mile for 2021, 26 cents per mile for 2022, 28 cents per mile for 2023, and 30 cents per mile for 2024.
The drop in the depreciation recapture in 2021 and 2022 is a direct result of the rapid increase in used car prices. We are now seeing moderation in those prices, therefore the amount of depreciation per mile has increased almost 15% in two years.