Are you taking full advantage of the business travel deduction?
As a small business owner, you are entitled to a tax deduction for gas and auto expenses when using a car for business purposes. You can do this one of two ways: (i) deduct the actual cost of your gas and other expenses, or (ii) take the standard rate deduction based on the number of miles you drive (e.g., the IRS business mileage rate for 2018 was 54.5 cents per mile. The rate increases to 58 cents per mile for 2019). You need to keep detailed records of your mileage, dates, places, and the business purpose of each trip, but you will be surprised how quickly the miles add up and the economic value of this deduction. If you have a “company car” that you use 100% for business purposes, then a different set of rules apply, but that is a topic for another day.
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