CHARLOTTE – Good News for Small Business Owners, Contractors and Sole Proprietors.
Hey Tax Payer, do you drive a lot and have a log to back it up?
So, Let’s Get To It…
Over the years, the standard business mileage rate (BMR) has always played a pivotal role in assisting Small Business Owner, Contractors, and Sole Proprietors with their biggest expense over the past couple of years: Fuel. The demand for fuel, since the subsiding of COVID-19, has ballooned the price over the past couple years. Remember, gas prices were low because there wasn’t a demand for fuel because people worked at home. No demand, no high price.
Ten years ago, the BMR was set at 55.5 Cents Per Mile (CPM). There has always been a steady increase in this rate to assist business owner until 2016 where the rate dropped to 54 CPM from 57.5 CPM. It wasn’t until 2019 that we final regained the levels of increase back to 58 CPM. That time was also the beginning of the Pandemic.
The IRS has announced they will increase the Standard Mileage Rate for the upcoming tax season to 58.5 CPM. This increase will put us back on track with the annual increase that was abandoned in 2017. The greatly needed assistance to Small Business Owners, Contractors, Sole Proprietors with their expense on fuel, since the demand has driven up the cost for the supply, will be a breath of fresh air to their taxes.
For more information about this article then contact Mays Concepts, LLC at (704) 526-0307, email us at firstname.lastname@example.org, or visit/like our Facebook page https://www.facebook.com/MaysCon
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