Mobility runs through our DNA. One of our core undertakings is solving the mobility needs of companies. This is a thorough guide on how to calculate mileage for tax deduction purposes, elucidate some of the technical jargon, and provide you with useful tips. Whether you use your private car to go from one meeting to the other or for the transportation of goods for your company, there are some tax benefits you can enjoy. We will explore what calculation of mileage means, the methods available for deducting business-related mobility expenses, and some tips about cutting-edge technology.
1. What does it mean to calculate mileage for tax deduction?
Whenever a person uses a car for business-related purposes and incurs costs derived from these business trips, the Internal Revenue Service (IRS) foresees tax deduction benefits. These benefits are part of the broader concept of tax-deductible business expenses that include costs of travel, transportation, gifts, and non-entertainment-related meals.
"If you use your car only for business purposes, you may deduct its entire cost of ownership and operation (subject to limits…). However, if you use the car for both business and personal purposes, you may deduct only the cost of its business use."
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