2016 - Vehicle Expense
The standard mileage rates for the use of a car, van, pickup or panel truck will be:
54 cents per mile for business miles driven, down from 57.5 cents for 2015
19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
14 cents per mile driven in service of charitable organizations
Taxpayers always have the option of claiming deductions based on the actual costs of using a vehicle rather than the standard mileage rates.
Keep a log in your working vehicle to log all work related trips from office to appointment destination. And remember home to appointment is considered commuter miles.
In your log you should have the following for each trip:
Date | Destination From | Destination To | Miles | Purpose |
To substantiate miles driven keep your vehicle maintenance receipts stating odometer miles. Ideally you should keep all maintenance receipts with your Tax Returns when claiming vehicle expense.
In case of an audit the IRS and/or state tax agency will require a mileage log to support the miles reported on a Schedule C and/or a 2106. Having invoices, realtors should have a copy of the open house fliers, or appointment confirmations will always make your case stronger.
The IRS has 3 years to audit your return, and one discrepancy may open more years to audit.
A few minutes will save you money later.
