Tracking Business Mileage
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Tracking
Business Mileage
For 2023 the rate is 65.5
cents per mile.
For
2022 the rate is
58.5 cents per mile.
For
2021 the rate is
56 cents per mile.
For
2020 the rate is
57.5 cents per mile.
For
2019 the rate is
58 cents per mile.
For
2018 the rate is
54.5 cents per mile.
For
2017 the rate is
53.5 cents per mile.
For
2016 the rate is
54 cents per mile.
The IRS requires that you
keep a record of your business travel if you want to take a deduction on
your tax return.
See:
IRS
Topic 510 Business Use of Car.
You have a choice of the Actual Cost method,
or Mileage rates.
The
Actual Cost
method require detailed records of all operating expenses (gas,oil,
maintenance/repairs, etc) of the vehicle and of the mileage put on for
business and personal use.
Primarily business use, and total mileage
for the year.
Subtracting the total business miles from
total miles for the year gives you the personal mileage.
It is only necessary to keep detailed
records of the business travel.
When using the actual cost method you do
not get to deduct the mileage rate in addition to that.
The Mileage method involves just
taking the business miles travelled and multiplying by the current mileage
rate, as above.
In most cases the mileage method gives the largest
tax deduction and requires far less administrative details.
Click
here for a mileage worksheet for use with either of the
methods.
Did you forget to
keep track of your mileage last year?
You can reconstruct it.
Use Google or Bing
maps
if you have your business calendar of when and where you went.
The map apps will give you door to door
mileage.
This method takes more effort than
keeping track in the first place, but for those of you who forgot . . . this
is an alternative.
You can do this for a year or two,
thereafter it may raise a red flag with the IRS.
Don’t make it a habit, and save yourself
a lot of work, keep a mileage record.
See mileage rates for 2017
and prior years
here.
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Copyright © 2001-2023 Gary W. Lundgren, EA
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