Specialty Bookkeepers and Tax Salt Lake City Utah

Don’t Miss Out on Tax Deductions for Business Miles

If you use your personal vehicle for business purposes, you may be eligible to claim a mileage reimbursement on your tax return. The mileage rate is determined by the IRS and can vary from year to year. The standard mileage rate for 2022 is 58.5 cents per mile for business use, and the IRS has increased the rate to 65.5 cents per mile for 2023, which can quickly add up for reimbursable expenses on your tax returns.

To claim mileage reimbursement, you will need to keep a detailed record of your business miles driven. This can be done using a mileage logbook, a spreadsheet, or a mobile app designed for mileage tracking. We recommend MileIQ. Your record should include the date, starting and ending odometer readings, total miles driven, and the purpose of the trip.

It’s important to note that you can only claim mileage for business purposes, not for personal trips. Commuting to and from work is generally not considered business mileage, unless you are traveling to a temporary work location or driving between multiple work sites in the same day.

If you are unsure about whether a particular trip qualifies as business mileage, it’s best to consult with a tax professional or refer to IRS guidelines. Keeping accurate records of your mileage and expenses can help ensure that you receive the maximum allowable reimbursement and avoid any issues in the event of an audit. Reach out to SBK for help with this and other reimbursable business expenses.

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