Tracking mileage is one of the most important ways to keep tabs on how much it costs you to use your car for business. You can track in a few different ways, whether it be logging trips in a notebook or using a mileage tracking app. The most important thing is to make sure you’re separating out business trips from personal ones.
The info you need to keep track of is:
- mileage driven,
- date of the trip, and
- the business purpose of the trip.
- Adding odometer readings is a nice touch, as well, especially for the beginning and end of the year.
There are a bunch of mileage tracking apps out there that make it quick and easy to keep accurate information. They generally use GPS info to track the miles you drove for each trip. Afterwards, you can note whether the trip was business-related or personal. Then at the end of the year you’ll know the total miles for the year in both categories when you have to fill out that info.
Mileage is one of those expense categories that's easy to forget to track. If you do not have any idea how many deductible miles you have driven, try to remember each trip, the destinations involved, and the business purpose. Then use Google maps to find out the miles driven.
The information needed for your tax return includes:
- total business miles,
- total personal miles, and
- commuting miles, if they apply.
Ask your tax preparer or email firstname.lastname@example.org if you have further questions, we’re always happy to help!