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Can I Deduct Mileage in My Home Based Business?

By , About.com Guide

Question: Can I Deduct Mileage in My Home Based Business?

CPA Gail Rosen answers a common question about mileage for travel to and from a home based business:

If I work out of my home as an independent contractor, can I claim mileage to work sites and back home? Can I deduct trips made to the bank and post office? What if I make business-related trips from my home office and also stop to do personal errands? How do I figure the mileage?

Answer:

Yes, your mileage to work sites and back are business miles that must be supported by written documentation of where you went and how many business miles you traveled. Trips to the bank and post office also qualify as business mileage if documented. Trips for personal errands are ignored. The end result of your records should be business miles for the year (with a backup written log) and total miles driven for the year. To document your total miles driven, take your odometer reading at the beginning and end of the year. The IRS often looks at the odometer reading on auto repair bills to see if your total miles are reasonable.

Read More about Home Based Business Taxes and

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