Common questions

How do I keep track of my mileage for tax purposes?

How do I keep track of my mileage for tax purposes?

The best way to keep track of mileage for taxes is to have a contemporaneous mileage log. That means the records are created each day you drive or soon after. Recreating a mileage log once you learn you’re being audited won’t fly with the IRS.

How do I create a mileage spreadsheet?

How to Create a Mileage Expense Sheet in Excel

  1. Start Excel and select the “File” tab.
  2. Enter trip details.
  3. Enter odometer readings from the beginning and end of your trip.
  4. Add fields.
  5. Change the appearance of the worksheet.
  6. Calculate mileage reimbursements if the template does not do so.

What is a mileage form?

A mileage reimbursement form is used primarily by employees seeking to be paid back for using their personal vehicle for business use. Seeing as there is no way to properly calculate the true cost of performing the trip by the employee, the IRS announces these rates on an annual basis for employers and businesses.

How do I set a mileage log?

How to Log Mileage for Taxes in 8 Easy Steps

  1. Make Sure You Qualify for Mileage Deduction.
  2. Determine Your Method of Calculation.
  3. Record Your Odometer at Start of Tax Year.
  4. Maintain Driving Log (if Needed)
  5. Maintain Record of Receipts (if Needed)
  6. Record Odometer at End of Tax Year.
  7. Record Mileage on Tax Return.

How do I calculate mileage?


  1. Get the miles traveled from the trip odometer, or subtract the original odometer reading from the new one.
  2. Divide the miles traveled by the amount of gallons it took to refill the tank. The result will be your car’s average miles per gallon yield for that driving period.

How do I create a mileage log?

Here is a step-by-step instruction for creating a Mileage Log Form using the Excel spreadsheet. Step 1. Start Microsoft Excel. Step 2. In cell B2 type ‘Mileage Log’. Step 3. Select cell B1 to E1 and click on Merge and Center Justify icon in the toolbar to merge and center the text.

Why you should keep a mileage log?

Why you should keep a mileage log? Mileage log records are necessary for any business that wants to make mileage deductions for tax purposes. Many business owners simply estimate their business mileage, but it is important to note that the IRS looks at mileage deductions closely and you could be audited because of it.

What do you need on your mileage log?

Date of drives

  • Starting and end points
  • Mileage of drives
  • Business purpose of the trip
  • How to recreate a mileage log?

    How To Recreate a Mileage Log Buy a record book were you can log the date, odometer start and stop readings, the purpose of the trip, the total miles… Keep a photocopy of all receipts related to business trips together with your mileage log. The original copies of these… Get in the habit of

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