Business Miles versus Commuting: Which Is Deductible?

02 Jul Business Miles versus Commuting: Which Is Deductible?

As we’ve discussed in previous blogs, miles driven for business purposes can be deducted on your tax return as a business expense. However, it’s important for you to be aware of what qualifies as business mileage and what does not. Here’s a brief look at what the IRS accepts for this particular deduction, and what does not qualify. For more information, or for assistance on filing a business tax return in Provo, contact one of our CPAs at The Accounting Guys.

The 3 Types of Mileage

For IRS purposes, there are three different mileage categories:

  • Personal – Driving not related to any business endeavors (e.g., going to the grocery store, taking your kids to school, etc.)
  • Commute – Traveling between your place of residence and your primary place of work
  • Business – Any other travel related to doing business (e.g., visiting a customer, attending a conference, etc.)

If you have a separate office where you perform most of your work, going from your home to your office is your commute. If your office is in your home, then any traveling you do for business would be considered business mileage.

What Can You Deduct?

For the purposes of deducting your mileage, only miles accrued under the “business” category, as described above, would qualify for a deduction on your business tax return. Miles driven for your commute or for personal purposes do not qualify. If you want to learn more about how to track and claim these miles on your return, read our blog on claiming your mileage as a deduction, or contact us for help filing a business tax return in Provo.

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