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Ellie Kim

How to properly claim business mileage deduction for multi-stop journeys in my sole proprietorship

I'm trying to figure out the correct way to claim business mileage for my sole proprietorship. I understand that regular commuting doesn't count, but I'm confused about mixed personal/business travel. Let's say I have a journey with these legs: 1. Home to Store A for personal errands (I know this doesn't count as business mileage) 2. Store A to Store B (the only reason I'm going to Store B is to buy supplies for my sole proprietorship) 3. Store B to my Home Office Can I claim leg 2 or leg 3 as business miles for auto deduction using the standard mileage method? Also, would the answer change if instead of going from Store A → Store B → Home Office, I went from my W-2 job office → Store B → Home Office? I'm trying to maximize legitimate deductions but don't want to do anything improper. Thanks for any help!

Yes, you can definitely claim some of this mileage! Here's how it works with your scenarios: For your first journey (Home → Store A → Store B → Home Office): - Leg 1 (Home to Store A): Not deductible since it's personal as you noted - Leg 2 (Store A to Store B): This IS deductible because the sole purpose was for business supplies - Leg 3 (Store B to Home Office): This IS also deductible since you're traveling to your principal place of business For your second scenario (W-2 Office → Store B → Home Office): - The trip from your regular W-2 job to Store B IS deductible because you're not commuting home but going to a business location - The trip from Store B to Home Office IS deductible for the same reason as above Remember that good record-keeping is essential. Track your mileage with the date, starting/ending locations, business purpose, and total miles. I recommend using a mileage tracking app or keeping a dedicated logbook in your car.

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What about if I leave from my W-2 job to do business errands then go home (not to a home office)? Is that still deductible or is it considered commuting?

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If you leave your W-2 job to do business errands for your sole proprietorship and then go home (without a home office), the trip from your W-2 job to the business errand location is deductible, but the trip from the business location to your home is not deductible. In that scenario, the final leg is considered personal commuting because you're returning to your personal residence that isn't established as a principal place of business. The IRS views this as a commute that would have happened anyway.

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After struggling with similar mileage tracking issues for my side business, I found this amazing tool called taxr.ai (https://taxr.ai) that completely simplified the process. I was always confused about what miles I could legitimately claim when mixing business and personal travel. Their system helped me understand exactly which segments of my trips were deductible, and I actually found out I was under-claiming a bunch of legitimate business miles! The tool analyzes your travel patterns and helps identify which portions qualify as business mileage based on IRS rules. It also creates documentation that would stand up to an audit.

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Do they have an app that tracks the miles automatically or do you have to input everything manually? I always forget to log my trips and end up estimating which I know is a no-no.

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Sounds interesting but how accurate is it really? I mean can it actually tell the difference between business and personal trips or do you still have to categorize everything yourself?

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They do have an automatic tracking feature that works with your phone's GPS, so you don't have to remember to log every trip manually. It runs in the background and then lets you categorize trips with just a swipe. Super simple compared to the paper log I used to keep (and constantly forget to update). As for accuracy, it's surprisingly good at learning your patterns. After you categorize a few trips, it starts to recognize common destinations. You still need to confirm each trip's purpose, but it makes educated guesses that are right most of the time. The best part is it creates IRS-friendly reports that show exact business percentages and all the documentation you'd need if questioned.

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Just wanted to update everyone - I tried taxr.ai after seeing it mentioned here and it's been a game-changer for my mileage tracking! I used to either forget to track my miles entirely or get confused about what was deductible when I had mixed-purpose trips. The system actually flagged several business trips I wouldn't have thought to claim, and it gave me clear explanations of why they qualified under IRS rules. For complicated multi-stop journeys like the OP described, it breaks everything down into deductible vs non-deductible segments. My accountant was impressed with the detailed reports too. Definitely worth checking out if you're struggling with mileage tracking for your business!

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I had a similar situation with tracking my business mileage and was constantly stressed about potential IRS questions. After multiple failed attempts to get clarification by calling the IRS directly (endless hold times!), I found Claimyr (https://claimyr.com) and it was amazing. They got me connected to an actual IRS agent in about 15 minutes who answered all my mileage deduction questions! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent was able to confirm exactly what the previous commenter said - when traveling from one business location to another business location (including a legitimate home office), those miles are deductible. They also explained the documentation requirements I needed to maintain.

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Wait, this actually works? I've tried calling the IRS multiple times and always end up on hold forever or getting disconnected. How does this service get you through when nobody else can?

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Sounds like a scam tbh. The IRS is notoriously impossible to reach. I doubt any service can magically get you through when millions of other people can't.

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It absolutely works! They use technology that continuously redials and navigates the IRS phone tree until there's an available agent, then they connect you directly. They basically do the waiting for you. When a spot opens up, you get a call and are connected immediately to the agent. I was definitely skeptical at first too. But think about it - you don't have to sit on hold, you can go about your day and then get connected when an agent is actually available. For my question about business mileage between multiple locations, I needed an official answer directly from the IRS, and this was the only thing that worked after weeks of trying on my own.

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I need to eat my words. After posting my skeptical comment, I decided to try Claimyr as a test because I had a complicated question about business mileage for my food delivery side gig that I couldn't get answered anywhere. I was absolutely shocked when they called me back in about 20 minutes and connected me directly to an IRS representative! No hold time on my end at all. The agent clarified that my delivery mileage IS deductible from my first pickup to my last dropoff, but not from my home to first pickup or last dropoff to home. This would have taken me days of attempts calling directly. I'm genuinely impressed and surprised this actually works as advertised.

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Something else to consider that hasn't been mentioned yet - if you have a legitimate home office that qualifies as your principal place of business, then trips from your home office to other business locations can be fully deductible. So in your case, if your home office is your main place of business for your sole proprietorship, then even the trip from home to Store B could potentially be deductible if the primary purpose was business. The key is whether your home office meets the IRS requirements for regular and exclusive business use.

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So if my kitchen table is my "home office" does that count? I do all my business stuff there but also eat dinner there too lol.

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No, your kitchen table wouldn't qualify as a home office. The IRS requires that a home office be used "regularly and exclusively" for business purposes. Since you also eat dinner at the table, it fails the exclusive use test. You would need a separate space - like a spare bedroom or a section of a room that is clearly partitioned and used only for business. This area can't double as personal space. Many people get tripped up on this and it's a common red flag in audits, so be careful about claiming a home office deduction unless you truly have a dedicated space that's used solely for business.

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Something I learned from my tax guy - keep a mileage log in your car and record EVERYTHING. Start/stop odometer readings, addresses, and purpose of trip. I use a simple notebook but there are also apps. The IRS is super picky about mileage documentation during audits. Without a contemporaneous log, they can deny your entire mileage deduction even if the trips were legitimate.

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Can you recommend any good apps? I tried MileIQ but it was draining my battery like crazy.

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I've been using Everlance for about a year now and it's been great - much better battery life than MileIQ. It automatically tracks trips in the background and lets you swipe to categorize them as business or personal. The free version covers most basic needs, but I upgraded to premium for the detailed reporting features my accountant loves. Another option is TripLog which also has good reviews for battery efficiency.

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