The Internal Revenue Service issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business and medical purposes.
Beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.
The Medical Expense Deduction
For elderly and disabled families, owner/agents may use the cost of transportation to and from medical treatment when projecting the Medical Expense Deduction. This includes medical treatment for approved Assistance Animals. If residents wish to use mileage to calculate this expense, be sure to use the new IRS Mileage Rate.
Gig Income/Self-Employment
Many of you are working with residents who receive income through Gig Employment. The most common “gig work” comes from:
When a resident claims to be self-employed, owner/agents should reference HH 4350.3 Appendix 6C to obtain HUD guidance related to verifying and projecting income.
When determining net income from self-employment, most residents will want you to use net income from a business when projecting annual income. Usually this means you will be reviewing a profit and loss statement or a balance sheet that includes expenses for an automobile.
Remember that a resident may either calculate the actual costs of using their vehicle or may use the standard mileage rates - but not both.
For additional information about gig income, check out our free summary RBD FASTFacts - Ride Hailing and Other Gig Income
