Registered Tax Return Preparer RTRP Practice Exam

The standard mileage rate for business use of a vehicle is established by the IRS and can change annually based on various economic factors, including the cost of fuel, maintenance, insurance, and depreciation. For the tax year 2023, the correct standard mileage rate for business use of a vehicle is indeed 65.5 cents per mile.

This amount is essential for tax purposes because taxpayers who use their vehicles for business can deduct this mileage on their tax returns, helping to reduce their taxable income. It is crucial to stay informed of any changes in the rates each year, as using the correct rate directly impacts the accuracy of the deductions claimed.

In this case, since the selected answer states 65.5 cents per mile, it aligns with the IRS guidelines for 2023, ensuring taxpayers can benefit from accurate and beneficial tax deductions related to their business travel.