4 results for tag: Business Mileage

Maximize Your Business Deductions: The Power of Accurate Mileage Tracking

Know This You can spend a lot more time with the IRS when you present an inadequate log of your business mileage. You can spend excessive time re-creating a mileage log that looks really good but will fail. The tax code forbids the IRS from giving you vehicle deductions when you fail to keep adequate records of your business mileage. The tax code forbids the courts from giving you vehicle deductions when you can’t prove your mileage. If you fail to keep a mileage log or other record that proves your business mileage and the IRS catches up with you, you will deduct less than your real business mileage and you might end up with no ...

How Will You Deal with the New 62.5 Cents Mileage Rate?

Well, the IRS woke up and noticed that average gas prices across the United States now exceeded $5.00 a gallon and took action that might help you a bit. Small businesses that qualify to use and do use the standard mileage rate can deduct 62.5 cents per business mile from July 1 through December 31, 2022. That’s an increase of 4 cents a mile. This brings up a practical question: What to do if you track business mileage using the three-month sample method? Three-Month Sample Basics As a reminder, here are the basics of how the IRS describes the three-month test: The taxpayer uses her vehicle for business use. She and other ...

Increase Your Tax Deductions Using the Business-Mileage Rule

Request Please clarify how to properly record commuting mileage, especially if you do other trips before and after stopping at your regular office. Response To record commuting mileage, you simply write in your appointment calendar (or other daily record or digital app): home to office, 10 miles, commute. Ugh! We Don’t Like That We absolutely, positively don’t like commuting mileage. You should dislike it, too. It’s personal. It’s not deductible. But with knowledge, it’s avoidable. Let’s eliminate commuting and make those trips from your home to your office deductible. The law gives you two ways to eliminate ...

Know These Four Magic Business Mileage Rules

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo When you know the rules related to business mileage, you Protect yourself in the event of an IRS audit, and Pay less tax. Take Henry, for example. Before he knew the mileage rules, he deducted 30 percent of his SUV’s cost. Once he learned the rules, he deducted 92 percent. Or look at poor Mark; he lost almost all his vehicle deductions in an IRS audit. Be like Henry! Here’s how... Start with this brief four-question quiz on the mileage rules that apply to your business (regardless of business type). Quest...