When you’re self-employed or you own a small business, it can be difficult to keep track of the little expenses you can claim to minimize your tax obligations. One of the things that many individuals forget on their taxes are the vehicle-related expenses they’re entitled to. It’s the little things like this that can add up and really make a difference in how much you save when tax season rolls around.
Tips to Maximize Your Business Mileage Deduction
Use an auto log to track your applicable mileage. You must be able to provide dates of travel along with the reason for the travel.
Keep a record of parking, tolls, transportation costs primarily for and essential to medical care and other miscellaneous travel expenses.
If your employer reimburses you for business mileage, make sure their reimbursement rate reflects the rate change for travel.
Keep record of your medical mileage even if you do not think your medical expenses will exceed the 7.5% of threshold income needed to use your medical mileage as an itemized deduction.
Plan your business trips to make certain your business mileage is deductible.
Charitable mileage is one of the more frequently overlooked deductions. This includes mileage deduction for volunteering at a charitable organization.
2011 Mileage Rates
The following rates apply to personal cars, minivans, trucks, SUV’s and panel trucks when claiming business mileage deductions.
Note: Commuting to and from work is not deductible when you are an employee.
Business Travel
- 51.0 Cents (1/1 – 6/30)
- 55.5 Cents (7/1 – 12/31)
Medical/ Moving
- 19.0 Cents (1/1 – 6/30)
- 23.5 Cents (7/1 – 12/31)
Charitable
- 14.0 Cents (1/1 – 6/30)
- 14.0 Cents (7/1 – 122/31)
