Monday, 12 September 2022 12:10

How to keep a fully IRS-compliant mileage log

IRS compliant mileage log IRS compliant mileage log pexels

Whether you're self-employed or own a small business, you'll likely want to know how to keep a fully IRS-compliant mileage log to deduct business mileage. Identify what is deductible, check what mileage tracker apps are worth using, and find out what the requirements are.


IRS’s mileage log requirements

The system has requirements that you need to meet if you are going to keep an IRS compliant mileage log. It is necessary for you to keep records of details of business trips in order to get a mileage tax deduction. These include each business trip’s mileage, the number of miles you drive a year, the trips' times, locations or destinations, purpose, and year-end and start-of-year odometer readings.

There are two ways of getting write-offs or tax deductions. One of them is using the IRS’s standard mileage rate, which is 2022 is 58.5 or 62.5 cents per mile driven. You may also try the actual expenses method, which requires you to collect itemized receipts, which are proof of fixed or variable expenses.

What miles are deductible?

If you travel a lot for business purposes, it’s recommended to check the list of mileage examples that are deductible. 

First and foremost, your business errands should be present in mileage records for business purposes, for example when you have to collect work-related supplies. 

It’s pretty obvious all business trips are deductible when you travel to meet your client. It is quite the same for business lunches with your clients or suppliers, or the trips between your company premises. 

It’s worth mentioning that even if you need to drive to the gas station after work, it will count as mileage for tax return possibilities.

How to keep a mileage log 

There are a number of possible options for running records for the purposes of mileage reimbursement, both the basic and more traditional ones and those more modern like tracking apps. 

Those who prefer keeping the fleet management manually, find using a mileage log template for excel useful. Some other self-employed or small business owners prefer using a google sheets mileage log template. These are effective, yet time-consuming options.

To save time, it’s worth using an automated system, which requires us only to enter the details, and the dedicated mileage tracking app will check and correct the records.

MileageWise as a mileage tracker app

MileageWise offers a mileage tracker app, perfect for the purposes of mileage reimbursement, write-offs, and tax return. It’s a great option for fleet management, as you always know where the drivers are, so tracking a free driver is quite simple. It’s kind of your stock advisor, giving you proper and clear information about cars, drivers, and mileage logs.

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