When you understand the rules for deducting business mileage, you:

• Protect yourself if the IRS comes calling
• Reduce your tax bill legitimately
  

Two Real-Life Lessons

Take Henry. Before he knew the mileage rules, he deducted only 30% of his SUV’s cost. Once he learned the proper method, his deduction jumped to 92%.

Then there’s Mark. He didn’t follow the rules and lost almost all of his vehicle deductions during an IRS audit.

How to Be Like Henry (Not Mark)

1. Know the Business Mileage Rules

   Understand which trips qualify as business miles and which are considered personal.

2. Document Your Mileage

   Keep a mileage log showing the date, destination, business purpose, and miles driven. Apps can make this quick and easy.

3. Set Up a Home Administrative Office

   If your home office qualifies as your principal place of business, trips from home to client sites or other work locations can count as business miles instead of commuting miles.
   

 A few simple steps can mean the difference between maximizing your vehicle deductions and losing them in an audit.

If you have questions about your business vehicle and mileage deductions, contact BASC Expertise—we’ll help you make the most of every mile.