Know the Business Mileage Rules

May 1st, 2021 at 9:07 PM

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 Marty—he lost almost all his vehicle deductions in an IRS audit.

Be like Henry. Here’s how.

1. Know the business mileage rules
2. Document your mileage
3. Create an administrative office for your business in your home

Mark S. Fineberg, CPA