 your presentations. So standard mileage rate so you may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. That's where the rate generally I believe is being pulled from when you're looking at the QuickBooks system in terms of the rate that they were using to figure you know the benefits that you might get. So the business standard mileage rate from January 1st 2022 to June 30th 2023 is 58.5 cents per mile. The business standard mileage rate from July 1st 2022 to December 31st 2022 is 62.5 cents per mile. They actually divided it up in 2022 and then it's going to go up in 2023 and later in compliance or in alignment hopefully with inflation. As inflation goes up these rates you would think would go up as well. Caution if you choose use the standard mileage rate for a year you cannot deduct your actual expenses for that year except for business related parking fees and tolls. This becomes a bookkeeping problem because now when I actually pay stuff on a cashed based system which is what many small businesses want to do they're going to be charging their expenses based on the bank feeds. When things go out of their checking account when they're auto related we're going to be tracking those items for taxes. If I'm going to use a mileage method then I have to basically remove the expenses that were the cash actual expenses and replace it with the mileage method in some way except we might still be able to get some actual expenses on top of the mileage method such as parking fees and tolls. So choosing the standard mileage rate if you want to use the standard mileage rate for a car or truck you own you must choose to use it in the first year the car is available for use in your business. So in later years you can choose to use either the standard mileage rate or actual expenses. One of the reasons I believe this is the case is because if you were able to put the car or truck on the books in the first year and take the actual expenses which could include depreciation and possibly accelerated depreciation then you can take a large expense in the first year and then switch to the mileage method which still gives you a pretty good deduction in following years. So in order to stop that the the IRS is going to say okay well you may have to choose you know you don't get to switch back and forth possibly if you're going to be taking the actual if you use the actual method right so if you want to use the standard mileage rate for a car or truck you own you must choose to use it in the first year the car is available for use in your business. So if you choose to use the standard mileage rate for a car you lease you must use it for the entire lease period including renewals. Standard mileage rate not allowed you cannot use the standard mileage rate if you so this is when you can't use the standard mileage rate number one operate five or more cars at the same time. Number two claimed a depreciation deduction using any method other than straight line for example acres or makers in other words when you take the actual mileage uh the actual deduction method you might be able to take depreciation and makers is an accelerated depreciation method meaning you get to deduct more in the first year. So that's what they're going to be skeptical of on the IRS. You take a big deduction for actual expenses in the first year including this big lump depreciation and then switch over to the mileage method which still gives you a significant significant amount of deduction and that seems like kind of double dipping on so that's why there's limitations three. Claimed a section 179 deduction on the car that's an accelerated depreciation in the first year which again you probably only do if you had if you were taking the actual using the actual method four. Claimed the special depreciation similar to 179 you would only do that it's kind of a form of depreciation if you were not doing the mileage method in first year five. Claimed actual car expenses for a car you leased or six are a rural mayoral carrier who received a qualified re-