August 5, 2020
Mileage tracking for tax deductions

Working remotely during the pandemic? You'll still have tax-deductible mileage if you run out to pick up supplies.

The miles you put on your vehicle for business purposes are tax deductible.

If you are self-employed — or a W2 worker, in some cases — you may take these deductions. But the IRS doesn’t want just any information on your mileage documentation. It’s best to consult with a qualified accountant, of course, for your particular situation.

If you’re eligible for these deductions, here is what to track to get you on the road to an audit-free tax-filing journey.

Off to work we go

So claiming mileage expenses means we can all deduct any work-related trip?

Not so fast.

Many tax filers are surprised to learn that you can’t actually deduct your morning commute — your actual ride to work — or your ride home. You can deduct use of your car to pick up work-related supplies, rides between offices, trips to meet clients and airport runs to catch a plane for a work-related flight.

So what exactly does the IRS need on your mileage log?

·      The date of the trip

·      Number of miles to your destination and back

·      Where you went for the business-related purpose

·      Description of the business-related purpose

It may seem difficult to remember to log these details every time you run to pick up toner cartridges, or meet a prospective client for coffee. But fortunately, there are smartphone apps out there to guide you through logging in the pertinent details — it’s easier than ever. Every little trip adds up; it’s important to track these expenses, which could potentially lead to real-money deductions for you and your business.

More questions on deducting mileage expenses for work? Contact Kerby Accounting & Business Solutions today.

Susan Shalhoub

Read more
You might also be interested in these
Accounting
Symptoms your company needs an accountant

Kari Kerby

Hiring an accountant gets companies unstuck and frees them up to thrive.
Miscellaneous
IRS Audits: Fact and Fiction

Susan Shalhoub

They are rare and not as complicated as they are made out to be.