Q: As a self-employed professional, I do a lot of driving and consequently rack up a lot of business mileage. This year my mileage deduction will be well over $7,000. A friend told me that a maximum of $2,000 in mileage expenses can be deducted each year. Is it true that there is an annual cap on the amount of mileage I can deduct?
If you claim the mileage deduction on your tax return, you need to be able to back it up with an adequate mileage log in the event of an IRS tax audit. Failure to do so could prove costly. Alvaro Velez learned this the hard way.