topic Business Deduction - Mileage in Business & farm

Business Deduction - Mileage

csoyke — Tue, 16 Mar 2021 21:34:13 GMT

I've entered the necessary data for the additional mileage driven for the business, however, it did not change our bottom line at all. Thought this was a deduction / expense that could be used.

Re: Business Deduction - Mileage

JoannaB2 — Tue, 16 Mar 2021 21:54:55 GMT

Yes, the mileage usage is deductible as business expense, if standard mileage is used rather than actual expenses. You must record personal and business mileage. You may use the actual expenses if standard didn't work which includes gas, registration, repairs, depreciation, insurance, and other business related car expenses. You can choose standard deduction or actual expenses but not both.

Re: Business Deduction - Mileage

csoyke — Wed, 17 Mar 2021 00:20:46 GMT

Thank you for your reply.

Additional info.

I went the standard route and it told me there was a $406 deduction for mileage. However, this deduction does not move my bottom line (i.e. Federal tax due). Note, This was the last piece of data put together to enter for the business. Have I exceeded some limits?

Re: Business Deduction - Mileage

DawnC — Wed, 17 Mar 2021 00:55:12 GMT

Possibly. Did you indicate that you can document your mileage numbers? You can't take a deduction if you can't verify and track your miles. Look at your business Schedule C to see how your mileage deduction was included. Your standard mileage rate deduction will be on Line #9. If your business has a profit after all deductions, it shows up on Line 31 and this net profit goes to Schedule 1, Line 3. If it creates a loss on Line 32 of Schedule C, did you mark that all of your investment is at risk? If you don't, your loss may be limited.

What amount shows up on Line 3 of Schedule 1? This amount should include your mileage deduction and is transferred to Line 8 (other income, including business income) of your Form 1040.