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HOW DO I SHOW THE CORRECT MILAGE FOR BUSINESS AND COMMUTING?

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June 5, 2019
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TurboTax Self Employed Online

Best answer by viktoriyab11

For example, if you drove a total of 80,000 miles during the year and 60,000 of those miles were business-related, your business-use percentage would be 75% (60,000 / 80,000). If you use the actual expense method for claiming your car deduction, 75% of your total car expenses would be deductible.

Miles traveled between your home and your place of business and back home, is nondeductible commuting mileage. However, if your house/room is the principal place of business and you use this designated area exclusively and regularly to either (a) meet with customers or (b) perform administrative work for your business. Now, when you leave your "home office" to drive to a business location and return to your "home office," all those miles become deductible business miles.

If you're audited, the IRS will want to see a log that includes dates, destinations and the reason for travel. It is a lot of Smartphone apps you can use to detect travel and log every trip automatically.

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viktoriyab11Answer

Employee

For example, if you drove a total of 80,000 miles during the year and 60,000 of those miles were business-related, your business-use percentage would be 75% (60,000 / 80,000). If you use the actual expense method for claiming your car deduction, 75% of your total car expenses would be deductible.

Miles traveled between your home and your place of business and back home, is nondeductible commuting mileage. However, if your house/room is the principal place of business and you use this designated area exclusively and regularly to either (a) meet with customers or (b) perform administrative work for your business. Now, when you leave your "home office" to drive to a business location and return to your "home office," all those miles become deductible business miles.

If you're audited, the IRS will want to see a log that includes dates, destinations and the reason for travel. It is a lot of Smartphone apps you can use to detect travel and log every trip automatically.