When tax time comes near, you try to think of every possible deduction you could take. What about you car? One deduction that is often overlooked is the gas mileage deduction. Here are some tips for claiming the tax deduction for vehicle expenses.
Keep track of your miles driven
The IRS has a standard mileage rate that can be deducted. Note that it changes every year. If your actual auto expenses are higher than the gas mileage rate, then you get to deduct the greater amount.
Provide all the required information regarding your car
If you plan on taking a gas mileage tax deduction, the IRS wants basic information about your car. (1) When you bought the car, (2) the percentage of business use versus personal, (3) what other vehicles you have available for use, and (4) your total mileage records itemized by business, committing, and personal. The IRS also wants to know what written evidence you have to support the mileage deductions.
Don’t Deduct expenses if your employer reimburses you
If your employer reimburses you for mileage expenses that you report, then you can’t tax a deduction in addition to this.
Don’t Deduct commuting expenses
You’re not allowed to deduct the mileage for commuting from home. You have to be at your place of work and then driving in the course of business to deduct the mileage.
Make sure to keep detailed records of your driving in order to take this deduction.