The qualifying mileage deductions permitted by the IRS does not include your commute from home to your permanent work location. However, if you travel to and from off-site meetings, business events, or even lunch or dinner with a current or prospective client, you can take the mileage deduction.
Documentation for these eligible miles has to be thorough in order to comply with the strict IRS standards in case you are audited in the future. Every time you use your vehicle for business purposes, you should document the following:
- Date of the trip
- Starting/Ending Points
- Purpose of the trip
- Vehicle’s Starting/Ending Mileage
- Tolls/Other trip related costs
This information is required to be kept for three years after you file your income tax return and can be kept in handwritten notes, spreadsheets, or electronically.
The current rate for the standard has been reduced to 53.5 cents/mile in 2017, down from 54 cents/mile in 2016.
For questions, contact Clint Carder, CPA at 314-576-1350 or at email@example.com.