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3 tips if you drive your car (mileage deduction) for a business you own.

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  • 3 tips if you drive your car (mileage deduction) for a business you own.

    The first just came up on a tax return I'm reviewing and thought somebody out there might be unaware...

    1. Interest paid on your car loan and property taxes (if applicable for your state) are deductible in addition to the mileage deduction. For example, if you put a total of 20k miles on your car last year and 10k of those were for business, you can deduct 50% of your interest and property taxes on your schedule C or other applicable schedule.

    2. If you are in a partnership and have unreimbursed mileage for the partnership, you can deduct this expense against your partnership SE income on your tax return. Keep the log with your tax records.

    3. Reimburse yourself from your corporation from the business for your business miles. I keep a log and reimburse myself quarterly from the CPA firm, same as any other employee. Cleaner to write the check and show the money trail than to show a "due to" on the corporate books.

    Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

  • #2
    When you say "for business" that doesn't count driving to and from the office, correct? What mileage can physicians that own our practices get reimbursed?

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    • #3
      If you have a home office that should qualify

      Even as an employee, I have a home office where I conduct telemedicine consults

      I then drive to one of 2 hospitals depending on the day and I return in the evening to once again review any telemedicine requests /messages

      If it's between two work sites, that's business mileage and not commuting mileage

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      • #4




        When you say “for business” that doesn’t count driving to and from the office, correct? What mileage can physicians that own our practices get reimbursed?
        Click to expand...


        Correct. You have to go to your W2 job (the first 1/2 of the commute) and then come home (the other 1/2 of the commute). Mileage beyond that should be tracked and reimbursed.
        Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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