Are you tracking ALL of your Commuting Mileage?

Commuting is defined as the distance between your home and your Office/place of employment or first business stop. For small business owners, we know that you do not stay in one place/location all day. So when can you start expensing those miles? NOW! Business miles begin once you leave the office (or first business stop) and travel to various locations such as the bank, post office, to pick up materials, and of course, the accountant. The mileage rate for 2012 is 55.5 cents per mile.

If your office is in your home and as long as you are at “work,” then your errands related to your business are considered business mileage. Picking up the kids from daycare and then going to the bank is not acceptable (only the distance from your house/office to the bank and back is acceptable)

Medical Mileage-  The standard mileage rate is 23 cents per mile for use of an automobile for medical care which include trips to the doctor and visits to the hospital.

Charity Mileage-   The standard mileage rate is 14 cents per mile for use of an automobile in rendering gratuitous services to a charitable organization.

Written by Melissa Downs, Midwest Bookkeeping & Tax Service www.midwestbkpg.com email at midwestbkpg@gmail.com