New Mileage Rate for 2024

If you use your personal car to do things for your business, TRACK YOUR MILEAGE so that you get that deduction when you do your taxes.

Step 1. Take a picture of your odometer at the beginning of the year (if you haven't done it yet, just go and take one now. just keep it in your file in case of an audit) - There will be people who will tell me this is not necessary, but according to the IRS is. They may not ask for this, but they also may if they audit you... so it's better to just have it.

Step 2. Track your miles! You can do it manually with a spreadsheet or you can use an app. You will need to list the date, the location, the purpose and the total miles. Some apps are MileIQ or if you have QuickBooks, you can use their mileage tracker.

Step 3. At the end of the year, you calculate the value of those miles using the IRS mileage rate. HERE is the link to the IRS website that has the mileage rate for each year.

The trick is to actually record your trips! If you don't record them, then you don't get your deduction.

This year (2024), every mile you drive for business purposes is worth $0.67!

As an example, driving to a venue to teach a cookie class is 18 miles round trip for me - that is a $12.06 deduction. If I teach 1 class per month, that is $144.72

Mileage can add up quickly! And it turns into a nice business deduction.

Think of all your trips to the store to pickup ingredients, any deliveries, any time you go to the bank to deposit/withdraw cash... those trips count as long as they have a business purpose!