Tags: Ask the Tax Expert

Ask the Tax Expert: What is the Maximum Business Mileage Deduction?

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Ask the Tax Expert: What is the Maximum Business Mileage Deduction?

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?

Ask the Tax Expert: Why You Can’t Estimate Mileage Deduction

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Ask the Tax Expert: Why You Can’t Estimate Mileage Deduction

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?