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Level 2
June 6, 2019
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Can I deduct miles driven to auctions or stores where I procure my products to sell?

  • June 6, 2019
  • 1 reply
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We are a resale business and were wondering if we can write off the mileage driven to auction and stores to procure the items we sell? And do we get to write the mileage off if we personally delivered an item?

Best answer by MichaelL1

Yes, you can as long as it is incurred to make money.

IRS allows business deductions for ordinary and necessary business expenses.

The standard mileage rate for 2016 is 54 cents a mile. 

EDITED to add three pictures to show where to enter the Vehicle expenses. 

Last picture is for a 1065 return, first three were for Home & Business.

You click on Federal Taxes, then sub-heading Deductions, then go down the screen to Auto Expenses.  I have highlighted the areas in yellow.

1 reply

MichaelL1
MichaelL1Answer
Level 15
June 6, 2019

Yes, you can as long as it is incurred to make money.

IRS allows business deductions for ordinary and necessary business expenses.

The standard mileage rate for 2016 is 54 cents a mile. 

EDITED to add three pictures to show where to enter the Vehicle expenses. 

Last picture is for a 1065 return, first three were for Home & Business.

You click on Federal Taxes, then sub-heading Deductions, then go down the screen to Auto Expenses.  I have highlighted the areas in yellow.

MichaelL1
Level 15
June 6, 2019
look above now in question