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Increase Your Vehicle Mileage Deductions - Houston Business CPA

Last week, we told you about the two different methods for deducting business vehicle expenses. The Standard Mileage Deduction & the Actual Expense Method. In this article we will go over what is business mileage.

Deduct Traveling from Home Office to Regular Office
First, we are assuming you have established an administrative home office and already claim the home office deduction. (If you are not sure if your home office qualifies for the home office deduction please read our home office deduction article). Next, for this article we are assuming you have a regular outside-the-home office or temporary work location.

So, driving from my Home Office to Regular Office is Deductible?
Yes, the IRS says that if you have an administrative office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade of business.

Can I Deduct Mileage to Regular Office With No Home Office
Transportation between your home and your regular office is considered commuting and not deductible. But you can deduct business mileage beyond your office commute. So if your commute to your office is 5 miles but you drive to a clients office 12 miles away, you can claim the 7 miles (12 miles less 5 miles) as business miles. If you drive 16 miles from your customers office to your office the 16 miles will be deductible.

Record Keeping
If you expect for your mileage deductions to hold up in the event of an audit the most important thing is keep a great mileage log. At a minimum your log must include date, time, business purpose, & mileage. However, you can do better!

If you are struggling with how to implement a system that will help you keep the perfect mileage log, please contact us and we will send you an example, the template and a spreadsheet file to get you started - for Free!

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