Tracking mileage for the purposes of deduction is a tedious pain in the neck. It’s the one thing I impress upon my clients each year because it is such a good deduction for people who use their own vehicle for work. This would be for any work miles that are not commuting miles. In addition to tracking miles for business you can also deduct miles for all charitable, medical and even moving miles! Some limits may apply but talk to your tax professional to see if you qualify for any of these other deductions.
Last year I recommended Mile IQ. This is an app that tracks all your miles. At the end of the day you swipe right or left to categorize your mileage. I found it was an easy way to track your mileage. There are other apps available but this year Mile IQ is giving any of our client referrals 30% off their subscription. Simply use promo code Tax30Pro at checkout. Here is the flyer if you would like more information. MileIQ Special Offer
To take advantage of the mileage deduction rates simply keep track in a log total miles used for each category below. Some of my clients use a small calendar in their car others use an app like MileIQ, Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
2016 Mileage Deduction Rates
Business rate per mile = .54¢
Medical and moving rate per mile = .19¢
Charitable rate per mile = 14.0¢
Taxpayers always have the option of calculating the actual costs of using their vehicle and not using the standard deduction rates. A taxpayer may not use the business standard mile deduction rate for a vehicle that has used any depreciation method in the first year of service for that vehicle. In addition, the business standard mileage deduction rate cannot be used for more than four vehicles used simultaneously.