How to Keep Track of Miles for Business

As gas prices raise it becomes more important to keep track of miles we drive for business reasons to use for tax deductions. Business miles that can be use for tax deductions include travel when purchasing supplies, visiting clients, conducting sales pitches and product delivery. Learn to Keep Track of Miles for Business.

Things You'll Need

• Note book to record business mileage.

Instructions

1. Start keeping track of your miles by putting a notebook in your car in a convenient place. Make sure to attach a pen to for ease. Every time you use your car for business travel mark the miles down from the car meter. Make sure to add reasons of travel. Keeping things up to date is important.

2. For those who wish to keep all electronic files, create a weekly or monthly habit of transferring mileage data to a excel sheet or other software program.

3. Do not include personal travel with your business mileage. Honesty is best and will work in your advantage if audited by the IRS.

4. Keep records of car repair and retail during business travels, but do not expect to deduct normal repairs and upkeep of the vehicle.

Tips & Warnings

• Make sure to visit with your tax preparer for complete details about what is tax deductible when traveling due to business.

• Use programs such as map quest or GPS systems to find the best ways to get to your destinations.

• Keeping a driving log and good financial record are a must for any successful business. It is best to start early in your business adventure and keep track of mileage constantly to avoid problems come tax time.

• If records are not kept in good order the IRS may not accept the deductions in a audit.