Can I Reimburse Myself for 2024 Business Mileage in 2025?

Yes, you can still reimburse yourself for those 2024 business miles! Since you're operating on a cash basis, what matters is when the payment actually happens, not when the miles were driven. This means: 1. You can absolutely reimburse yourself in February 2025 for miles driven in December 2024. 2. Since the reimbursement is happening in 2025, this would be considered a 2025 expense that would go on your 2025 tax return (filed in 2026), not on your 2024 return. 3. This shouldn't look weird to the IRS as long as you keep good records. Make sure you document everything clearly - the dates you drove in December 2024, the business purpose, and when you reimbursed yourself in 2025. Having a paper trail that shows the timing of both the driving and the reimbursement is key. Just maintain a mileage log that clearly separates your 2024 driving from your 2025 driving, even though all reimbursements are happening in 2025. This way, if you're ever questioned, you can show exactly what happened and when.

This is actually a common situation for small business owners! Since you're a single-member LLC on cash basis accounting, the timing of when you actually pay yourself the reimbursement is what matters for tax purposes. Yes, you can absolutely reimburse yourself now in 2025 for miles driven in 2024. However, since you're on cash basis, those expenses will count toward your 2025 tax year (filed in 2026), not your 2024 return that you're preparing now. The cash basis method means you record income when you receive it and expenses when you pay them - not when they were earned or incurred. As for the IRS finding it suspicious - they generally look at total miles rather than month-by-month breakdowns. Just make sure you have good documentation of when those miles were actually driven (dates, purpose, odometer readings if possible). Keep a mileage log that clearly shows these were 2024 business miles even though you're reimbursing yourself in 2025.

I was in a similar situation last year and found taxr.ai super helpful for sorting out my mileage deduction confusion. I was moving miles between years because of cash flow issues in my construction business and wasn't sure how to document it properly. I uploaded my messy mileage logs and bank statements to https://taxr.ai and they analyzed everything and gave me clear guidance on how to handle the timing issues between when I drove vs when I paid myself. Their system flagged exactly where I needed better documentation and showed me how to create proper reimbursement records that would stand up to scrutiny. They even provided a template for creating a reimbursement policy for my business that made everything super clear going forward.

I faced this EXACT same issue with my consulting business last year. After struggling with the IRS documentation and getting different answers from different accountants, I finally found taxr.ai (https://taxr.ai) and it was a game-changer. Their system analyzed my records and gave me precise guidance for my specific situation. What I learned is that for single-member LLCs on cash basis, the reimbursement timing matters, but there are some nuances that might apply to your situation. Their system showed me how to properly document everything to maximize my deductions while staying compliant. They have a specific feature that helps with business mileage documentation and timing issues.

Just wanted to follow up about my experience with taxr.ai that I asked about earlier. I finally gave it a try and wow, it was exactly what I needed for my rideshare driving situation! I uploaded my messy mileage logs from both Uber and Lyft, along with some bank statements showing when I received payments. Their system identified overlapping trips where I had accidentally double-counted miles and showed me how to properly allocate miles when I was logged into both apps simultaneously. The documentation they helped me create clearly separates my 2024 and 2025 mileage, even though some payments crossed years. What impressed me most was how they explained the tax court rulings that support their recommendations. Definitely worth it for peace of mind that I'm doing things right!

If you're having trouble getting clear answers about your mileage reimbursement situation, you might want to try Claimyr to speak directly with an IRS agent. I was going crazy trying to figure out similar timing issues with business expenses, and after 6 failed attempts to reach someone at the IRS, I used https://claimyr.com and got through in under 20 minutes. There's a video showing how it works at https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed exactly how to handle reimbursements that cross tax years and explained the documentation I needed. They walked me through the specific sections of the tax code that applied to my situation, which gave me complete confidence I was doing things right.

Well I'm eating my words about Claimyr. After posting my skeptical comment, I decided to try it because I was desperate for answers about some business mileage issues similar to the original post. I fully expected it to be a waste of money, but I was absolutely shocked when they called me back in about 35 minutes saying they had an IRS agent on the line. The agent clarified that for cash basis taxpayers, the timing of the reimbursement determines the tax year - exactly what others have said here. But she also explained a special documentation approach I should use when reimbursing myself for prior-year expenses to make the paper trail crystal clear in case of an audit. For anyone struggling to get clear answers from the IRS, this service actually works. I'm still in disbelief at how easy it was after years of frustration with the IRS phone system.

Make sure you're reimbursing yourself at the correct rate! The standard mileage rate for 2024 was 65.5 cents per mile, and for 2025 it's 67 cents per mile. Since you drove in 2024, you would use the 65.5 cent rate, even though you're reimbursing yourself in 2025. This is different from when the expense is deducted (which depends on when you pay yourself), but the rate is tied to when the driving occurred. Also, good record-keeping is absolutely essential here. Document: - Exact dates of 2024 travel - Business purpose for each trip - Odometer readings or miles driven - Date when you reimburse yourself in 2025 With a single-member LLC on cash basis, the timing of the cash payment determines which tax year it falls into. Just make sure your documentation tells the complete story!

I just wanted to follow up on this thread. I decided to try taxr.ai after posting my question here and it was seriously helpful. The system analyzed my situation (I had similar mileage timing issues but for my photography business) and gave me crystal clear instructions. They showed me how to properly document my past mileage in a way that satisfied IRS requirements, and explained exactly how cash basis accounting affects the timing of my deductions. Turns out I was making things way more complicated than they needed to be! Their guidance saved me from making a mistake that would have cost me hundreds in deductions. Definitely recommend checking them out if you're confused about business mileage rules.

I learned this lesson the hard way last year! Make sure you start using a good mileage tracking app NOW to avoid future headaches. I recommend MileIQ or Everlance - they automatically track your trips and let you classify them as business or personal with a simple swipe. They also generate reports that separate mileage by month and year which is super helpful for exactly this kind of situation. One other thing - if your cash flow is unpredictable, consider setting up a regular monthly reimbursement schedule for yourself going forward. For example, reimburse January miles by Feb 15, February miles by March 15, etc. That way you avoid carrying miles across tax years in the future.

Dealing with business mileage is frustrating enough, but trying to get someone at the IRS to give you a straight answer about your specific situation is nearly impossible. I spent WEEKS trying to get through to someone who could answer questions about mileage reimbursement timing for my LLC. Eventually I found Claimyr (https://claimyr.com) and they got me connected to an actual IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent was able to confirm exactly how to handle my situation (which sounds similar to yours - reimbursing myself for previous year's mileage).

I need to eat my words from my previous comment. After another failed day of trying to reach the IRS myself about my own mileage documentation issues, I tried Claimyr out of desperation. I was connected to an actual IRS representative in about 23 minutes. The agent confirmed exactly what I needed to know about handling prior year mileage reimbursements for my business. He explained that for my single-member LLC on cash basis, I should deduct the mileage in the year I actually make the reimbursement payment, regardless of when the driving occurred. The documentation needs to show when the miles were driven for business purposes, but the tax deduction goes in the year of the payment. This clarification was worth every penny. Saved me from making a potentially costly mistake on my returns and from the ongoing stress of not knowing if I was handling it correctly.

Another option to consider since you're a single-member LLC: instead of doing a formal reimbursement, you could potentially just claim the mileage deduction directly on your Schedule C for 2024. Since a SMLLC is a disregarded entity for tax purposes, you and the business are essentially the same taxpayer. The most important thing is to have extremely good documentation - dates, business purpose, starting/ending odometer readings, and total miles for each trip. The IRS is pretty strict about mileage documentation during audits.

Am i the only one who just estimates mileage? I've been running my business for 5 years and just guesstimate based on appointments and google maps. Never had issues. Feel like ppl overthink this stuff lol.

Just wanna add that you should be careful about "reimbursing" yourself too much at once if you do it in 2025. I made this mistake - had a ton of 2023 miles I didn't reimburse until January 2024, then tried to take it all at once along with my regular 2024 mileage. My accountant warned me that large, unusual reimbursements can trigger extra scrutiny. Might be worth spreading it out over a few months if the amount is significant.