Does Your Commute Count as Business Miles for Your Tax Return?

When you put miles on your car for business purposes, you can claim those miles as an expense on your business tax return. But it’s important to know which miles qualify for the deduction and which don’t. This blog will give you a quick overview regarding which miles you can claim on your return. If you have further questions or need business tax help in Provo, contact us at Biesinger & Kofford CPAs.

The 3 Kinds of Mileage

There are three kinds of mileage, as defined by the IRS. They are as follows:

  • Personal – Miles driven for personal reasons (e.g., attending personal events, picking up groceries, going out to eat, etc.)
  • Commute – Miles driven between your place of residence and your primary place of work
  • Business – Any other miles driven for business purposes (e.g., meeting with a client, attending a conference, etc.)

If you have a separate location where you perform the majority of your business’s functions, then the distance between your home and that location are considered your commute. If you perform your work at home and don’t have a separate office, then you do not have a commute.

Which Miles Are Deductible?

For the purposes of deducting miles on your business tax return, only miles that fall under the “Business” category, as described above, would qualify for the deduction. The miles you drive for your commute cannot be claimed on your return. If you’re uncertain which other miles would qualify for the deduction, contact one of our CPAs to get business tax help in Provo.