How Do You Calculate Business Driving Cost Per Mile?
As a small business owner, you may use your personal vehicle to make sales calls, visit customers, buy supplies and attend meetings. According to the IRS, if you are using your car for business purposes, you can deduct these expenses on your taxes. Here’s how to record and calculate your driving costs per mile in a manner that will satisfy an IRS audit of your business. Buy a small notebook and stash it in your glove compartment. Whenever you drive your vehicle for a business-related activity, write in the notebook the date, purpose of the trip, starting mileage from the odometer (e.g., 55,462) and ending mileage from the odometer (e.g., 55,482) and total trip miles (e.g., 20 miles). You may also wish to include any parking charges or tolls in your log at this time. At the end of the tax year (usually the end of the calendar year), review your log and add all of the business-related mileage you put on your vehicle. View the IRS mileage allowance by going to http://www.irs.gov and viewi
