One option is to write down the details for each trip you make. Record mileage on paper or in a spreadsheet. Regardless of how you record your miles, this separation of accounts can aid your recordkeeping. You will also be able to look back to your bank and credit statements for records as you’re filing your taxes. This can be a great way to keep personal and driving expenses separated. Keep a separate bank account or credit card for business expenses. The IRS is strict about how you must log miles for tax deductions, so it’s important to plan out how you will keep records before you start driving. In addition, any driving done for personal reasons during the day (picking up lunch, running an errand), cannot be deducted. These miles are considered commuting miles, which are not deductible. Likewise, your last ride commuting home cannot be deducted. The first drive of the day, from your home to the location where you wait for passengers, cannot be deducted for business mileage.
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