The IRS updates mileage deduction rates annually. Learn how to maximize your business mileage deduction and avoid common mistakes that trigger audits.
Understanding the 2024 Rates
For the final half of the year, the standard mileage rate for business use is up to 67 cents per mile driven. These rates apply to electric and hybrid-electric automobiles as well as gasoline and diesel-powered vehicles.
Keeping Precise Records
One of the easiest ways to trigger an IRS audit is by estimating your business mileage in round numbers or claiming unrealistic distances. You must keep a contemporaneous log (a log kept at the time of travel). It should record the date, purpose of the trip, starting and ending locations, and total miles driven.
Commuting Does Not Count
Driving from your home to your primary place of work is generally considered non-deductible commuting. Only transportation between business locations or traveling to meet a specific client counts. Working with a dedicated accountant can ensure you correctly document only valid business miles.