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?
Tags: Ask the Tax Expert
In this week’s Ask the Tax Expert, a budding beekeeper asks questions about which drives are deductible. While your business may not be as buzzing, read on for some applicable tips for small business owners.
In this week’s Ask the Tax Expert, we learn what happens when you drive a personal car for work but don’t receive a mileage reimbursement. Learn about how you can still receive tax relief if you don’t get a mileage reimbursement.
Q. I’ve had the same job for 20 years. I deduct the same business miles every year but now, the IRS is questioning my miles. I had heard that the IRS offers a 10% or $5,000 leeway on these types of deductions—is this true? Can I estimate mileage deduction as long as it’s close?