Home › Articles › Small Business Tax

Small Business Tax

The Mileage Deduction: How to Track and Claim Business Driving

Business driving is real money back in your pocket, but only if you track it. Here's how to claim it without leaving anything on the table.

By Chaudhry Ahmad, NorthPeak Financial Partners5 min read

Questions about your own numbers? Book a free consultation or call (847) 644-2288. NorthPeak is in Wilmette, IL, and works with clients nationwide.

01What counts as business miles?

Driving between job sites, to clients, to the bank, or to buy supplies counts. Your regular commute from home to a main workplace generally does not.

02Standard Rate vs. Actual Expenses

You can multiply business miles by the IRS standard rate, or track the actual costs of operating the vehicle and deduct the business percentage. Most people find the standard rate simpler. The IRS standard mileage rates update yearly.

03Keeping a Log the IRS Accepts

Record the date, destination, purpose, and miles for each trip. Apps that track this automatically from your phone remove almost all the friction.

04The Commuting Trap

Personal and commuting miles aren't deductible. Mixing them into your business total is a common, avoidable error that undermines the whole deduction.

05Consistency Wins

Whichever method you pick, apply it carefully and keep the records. A contemporaneous log beats a reconstructed guess every time.

Common questions

Does my commute count as business mileage?

No. The regular trip from home to a main workplace is commuting and is not deductible. Driving between job sites, to clients, to the bank or to buy supplies does count.

Standard mileage rate or actual expenses?

The standard rate multiplies business miles by the IRS figure for the year and is the simpler route for most people. Actual expenses track the real cost of running the vehicle and deduct the business percentage.

What does a mileage log need to show?

The date, the destination, the business purpose and the miles for each trip, recorded at the time. An app that tracks trips from your phone removes most of the effort, and a contemporaneous log beats a reconstructed one every time.

Have a question about your situation?

Book a free 30-minute consultation and we'll walk through it together.

Schedule a Consultation

This article is general information, not individualized tax, legal, or financial advice. Every situation is different. Reach out and we'll look at yours directly.