What is Mileage?
Mileage is the tax-deductible cost of using your vehicle for business, usually calculated at the IRS standard rate per mile (67 cents for 2024, adjusted yearly). Log the date, destination, purpose, and miles for every business trip — the deduction adds up fast and the IRS expects a written record.
In practice
A realtor drives 8,000 business miles in a year at $0.67/mile = $5,360 deduction. Her contemporaneous mileage log is what makes it survive an audit.
Bill mileage like a line item
Add mileage as a clean invoice line with Billia's free invoice generator.
Create an invoice — freeFrequently asked questions
Can I deduct commuting to my office?
No — commuting from home to a regular workplace isn't deductible. Driving from your office to a client site is. Home-office workers have more deductible trips.
Standard mileage rate vs. actual costs?
The standard rate is simpler and usually wins for typical cars. Actual-cost (gas, insurance, depreciation share) can win for expensive vehicles — but requires meticulous records.
What should a mileage log include?
Date, destination, business purpose, and miles. An app that logs automatically is ideal; a notebook in the glovebox works too.