The standard mileage rate is a fixed rate established by the IRS that allows taxpayers to deduct a specific amount per mile driven for business purposes. This rate simplifies the process of calculating deductible vehicle expenses, as it covers costs like gas, repairs, and depreciation without needing to keep detailed records of actual expenses. It's a vital tool for individuals and businesses when considering ordinary and necessary business expenses related to vehicle use.
congrats on reading the definition of Standard Mileage Rate. now let's actually learn it.