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.