Question: What Information is Needed on Business Mileage for my Business Tax Return?
Before you prepare your business tax return, you will need to gather information on the use of your vehicle for business purposes. Depending on how you record mileage - using the IRS standard deduction, or actual miles - you will need specific information.
Answer:
First you will need to determine if you should take the IRS standard mileage deduction or use actual expenses. The method you choose depends on how many miles you traveled and how much you used the vehicle. Read my FAQ "Which is Best..." for more information to help you decide.
Standard Mileage Deduction
If you are taking the IRS standard mileage deduction, you will need to provide a listing of all business trips, reason, dates, and mileage.
Actual Expenses
If you are taking actual expenses, you will need complete information on all expenses associated with your business use of the vehicle, including:
- Gasoline purchases
- Oil and maintenance expenses
- Interest expenses on the vehicle loan
- Or, lease payments for the tax year
- Annual depreciation on the vehicle
- Registration fees
- Insurance
- Repairs
- Tolls
- Tires
- Garage rent
- Parking fees
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