When you know the rules related to business mileage, you protect yourself in the event of an IRS audit and you pay less tax. Knowing the rules can increase the size of your federal tax rebate.
Let’s start with a brief four-question quiz on the mileage rules that apply to your business. To keep the questions and answers on point, we will focus on just one business. Here are the four questions:
Question 1. To help you manage this business, you have an administrative office in your home that you deduct on your taxes. To deduct the trip from your home to your office outside the home, you must first use your office in your home. Thus, you need to go into your home office and make a phone call or boot up the computer and ... Log in to view full article.