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IRS Mileage Rate: Tips For Tracking Your Mileage

IRS Mileage Rate: Tips For Tracking Your Mileage

The IRS mileage rate is the standard mileage reimbursement rate for business travel. The rate is set by the IRS and is updated each year. The current mileage rate is $0.58 per mile.

If you use your personal vehicle for business travel, you can deduct the mileage on your taxes. You will need to keep track of your mileage, as well as your expenses, in order to claim the deduction.

Here are some tips for tracking your mileage:

– Keep a mileage log. This can be a simple notebook that you keep in your glove compartment. Whenever you use your vehicle for business travel, jot down the date, the starting odometer reading, the ending odometer reading, and the total miles driven.

– If you use your personal vehicle for both business and personal travel, make sure to keep track of the miles driven for each. This will help you calculate the deduction correctly.

– If you use your personal vehicle for business travel, you can deduct the actual expenses of operating the vehicle, such as gas, oil, repairs, and tires. You will need to keep receipts for these expenses.

– If you use your personal vehicle for business travel, you can also deduct the depreciation of the vehicle. This is calculated using a standard mileage rate.

– You can also deduct parking fees and tolls that you incur while traveling for business.

– If you use public transportation for business travel, you can deduct the cost of the transportation. This includes trains, buses, taxis, and airfare.

– You can also deduct the cost of lodging and meals while traveling for business.

Keep in mind that you can only deduct the business-related portion of your travel expenses. If you use your personal vehicle for both business and personal travel, you will need to divide the expenses between the two.

Also, keep in mind that you can only deduct the expenses that you actually incur. If you receive a per diem allowance from your employer, you can only deduct the actual expenses that you incur.

If you have any questions about the IRS mileage rate or how to track your mileage, you should consult with a tax professional.

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About the Author: Linda Clevenger

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