When you know the rules related to business mileage, you
protect yourself in the event of an IRS audit, and
pay less tax.
Take Henry, for example. Before he knew the mileage rules, he deducted 30 percent of his SUV’s cost. Once he learned the rules, he deducted 92 percent.
Or look at poor Mark—he lost almost all his vehicle deductions in an IRS audit.
Be like Henry. Here’s how.
Start with this brief four-question quiz on the mileage rules that apply to your business (regardless of business type).
Question 1. To help manage your business, you have an administrative office in your home that you deduct on your taxes. To deduct the trip that takes you from your home to your office outside the home, you must first use your office in your home. ... Log in to view full article.