February 3, 2023
Change in vehicle classification standard for Clean Vehicle Credit qualification
The IRS made changes to the vehicle classification standard used to determine whether a vehicle is a van, SUV, pickup truck, or other vehicle when establishing qualification for the Section 30D Clean Vehicle Credit. This change allows for more vehicle to fall under the higher $80,000 MSRP limitation.
January 24, 2023
Digital assets reporting
The IRS reminded the taxpayers that they again must answer a digital asset question, even if they had no engagement with digital assets, and report all digital asset-related income when they file their 2022 federal income tax return. The term “virtual currencies” has this year been replaced with the term “digital assets”.
January 19, 2023
Auto depreciation limitations increased again for 2023
Repeating last year’s increase, the IRS increased the depreciation limitations for passenger automobiles, including trucks and vans, acquired after Sept. 27, 2017, and placed in service during 2023, for 2023 and each succeeding tax year by $1,000. Applying “bonus” depreciation, the limitation is $20,200 for the first tax year, $19,500 for the second tax year, $11,700 for the third year and $6,960 for each year after that. Without the bonus depreciation, the 2023 first-year limitation is $12,200.
January 12, 2023
IRS to start accepting and processing 2022 tax returns on January 23, 2023
The IRS sets date for an official start of 2023 filing season and will begin accepting and processing 2022 tax returns on January 23, 2023. The filing deadline to submit 2022 tax returns or an extension to file and pay tax owed is Tuesday, April 18, 2023, for most taxpayers.
January 3, 2023
Business Standard Mileage Rate for 2023
The IRS announced an increase to the optional standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. The increase is effective as of January 1, 2023 and brings this rate up 3 cents to 65.5 cents per mile. The rate per mile driven for medical or moving purposes for qualified active-duty members of the armed forces remained at 22 cents per mile. The rate per mile driven in service of charitable organizations remained at 14 cents per mile.