How to Use a Business Mileage Log

Keeping track of the miles you drive for work will allow you to file for a tax deduction.

If you own a business or are in sales and drive a vehicle on the job, you can deduct the business portion of your vehicle expense. You can create a simple system to keep track of business mileage and use the record for reimbursement or taxes. The most difficult part of using a business mileage log will be maintaining the discipline to track your mileage and record it in your log.

Things You'll Need

• Mileage tracking sheets
• Clipboard or folder
• Pen

Instructions

1. Set up a mileage log sheet using a table with word processing software or using a spreadsheet program. Include columns to note the date, your odometer reading and the miles you drove for business purposes.

2. Make 13 copies -- one sheet for each month plus a spare. Keep the sheets on a clipboard or in a folder in the car. Be sure to put it in a handy place so you can keep accurate records of every deductible mile.

3. Note the date, odometer reading and business miles driven for every business-related trip you make.

4. Total the miles driven at the end of each month. Make a copy of the month's completed mileage log sheet and put it with your work records. This way, you have two copies in case one is lost.

5. Record your odometer reading at the end of the year, and total up the miles you drove for business that you recorded for all 12 months. Use this figure to calculate your deductions for tax purposes.

References

• FOX Business: How to Write Off Your Vehicle Expense
• Internal Revenue Service: Business Use of Car