Mileage Deduction Log

A simple guide with tools to tracking business mileage!

A standard mileage deduction for a small business owner can prove to be very valuable at tax time. In 2024, the IRS will allow a deduction of $0.67 per mile. For a small business owner that uses their personal vehicle for business, this can add up quickly! However, a lot of taxpayers are unaware of how to track their mileage properly and are left scrambling at tax time. This guide should help you be prepared.

1. What does the IRS log require?

   1. date of the trip

   2. business purpose of the trip

   3. starting address

   4. ending address

   5. starting odometer

   6. ending odometer

      1. ending minus starting equals miles driven

      2. Miles driven times IRS mileage rate equals potential deduction.

2. The log must be written and cannot be an estimate

3. Tools to track mileage

   1. MileIQ or similar tracking apps.

   2. Excel Workbook

   3. Hand written

   4. Amazon sales some logs too

4. What does the standard mileage deduction include?

   1. fuel

   2. maintenance and repairs

   3. depreciation

   4. insurance

   5. registration

5. What does the standard mileage deduction not include?

   1. Parking and tolls. Track these separately and keep receipts. These can be deducted in addition to the standard mileage deduction.

6. Commuting from your home to office is NOT business related.

If you have questions about using the actual expense method, please book a consult by using one of the links below.

Half hour

Full hour