How to Claim a Gas Mileage Deduction for a Small Business

When claiming a gas mileage deduction for your small business, make sure you first understand which kinds of mileage are actually deductible. Personal trips like going to the mall or to the gym don’t count. Neither do commuting miles, such as going to your regular place of work.

Running errands, going to see clients, or doing day-to-day business purpose activities after you’ve already been to the office do qualify for a tax deduction.

You’ll also need to determine the standard mileage rate that the IRS is currently using. You can find this information at IRS.gov. If you keep track of your mileage on a weekly basis and then multiply it by this rate, that is the number to use on your tax return.

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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