How do I calculate my mileage rate for tax purposes?

How do I calculate my mileage rate for tax purposes?

To calculate your mileage rate, you can use the IRS standard mileage rate, which is updated annually. For 2023, it's 65.5 cents per mile.

What if I use my car for both personal and business purposes?

You should keep a log of your business miles versus personal miles. Only the business miles can be deducted.

How do I keep track of my mileage?

You can use a mileage tracking app, a spreadsheet, or a simple notebook to record your trips, including dates, destinations, and purpose.

Are there any other expenses I can deduct related to my vehicle?

Yes, you can also deduct expenses like gas, maintenance, insurance, and depreciation if you choose the actual expense method.