It’s no secret that most small business owners are operating with limited budgets. If you aren’t taking advantage of mileage deductions, you might be missing out on a valuable opportunity to slash your tax bill this spring.
Whether you drive your personal vehicle to meet with clients, attend trade shows, purchase supplies, or pursue continuing education related to your career choice, we all know the IRS allows you to deduct a portion of this mileage from your annual tax burden. As of 2016, individuals driving their vehicles for business can deduct 54 cents for every mile traveled. Following is a table of the different types of services for which mileage deductions are allowed with years & the Cost Per Miles (CPM) in cents:
| Period | Business | Charity | Medical Moving |
|---|---|---|---|
| 2010 | 55 | 14 | 16 |
| January 1 – June 30 2011 | 51 | 14 | 19 |
| July 1 – December 31 2011 | 55.5 | 14 | 23.50 |
| 2012 | 55.5 | 14 | 23 |
| 2013 | 56.5 | 14 | 24 |
| 2014 | 56 | 14 | 23.50 |
| 2015 | 57.5 | 14 | 23 |
| 2016 | 54 | 14 | 19 |
You don’t have to decide what mileage to track, track it all. Since volunteer mileage is also deductible, if you track all you mileage and then separate the personnel you will be ahead. Here are just a few of the travel types considered deductible:
- Travel between offices and/or work sites
- Trips to purchase supplies
- Visits to banks, post offices, and other business-related destinations
- Travel to meet clients, customers, suppliers, and vendors
- Driving to and from airports for business travel
Although tracking your business miles is essential, many owners neglect this responsibility due to the perceived hassle. Fortunately, new tools exist that make logging your business miles easier than ever.
Choose accurants for all your Mileage Tracking needs
Today’s businesses need a complete solution for their accounting needs. The total package for small business accounting, accurants’ cloud-based software gives you the confidence that comes with knowing all your expenses are being tracked in a single location. You can maximize potential deductions while satisfying the IRS’ strict audit requirements. Additionally, accurants’ all-in-one software also features easy time tracking, invoicing, project management, and more.
Don’t pay more than your fair share in taxes this year. For more information about accurants, contact us today or register to start your FREE 30-day trial. We look forward to helping you run your business in the coming years.