Understanding Self-Employed Mileage Deduction Rules - What Counts and What Doesn't?

You're right to be confused because there's a common misunderstanding here! Let me clear this up: When you're self-employed, the rules about deducting mileage depend on where your "principal place of business" is located. If you have a dedicated home office that qualifies as your principal place of business, then trips from your home to client locations or other work sites can be deductible because you're traveling from one business location to another. However, if your principal place of business is NOT your home (like if you rent an office space somewhere), then driving from your home to that office is considered non-deductible commuting - just like it would be for a regular employee. As for "business vehicles" - you can't simply designate a personal vehicle as 100% business and deduct everything. You need to track business vs. personal use and only deduct the business portion. The IRS will definitely question a vehicle claimed as 100% business use. Hope this helps clarify things!

After struggling with exactly this confusion last year, I found this amazing tool called taxr.ai (https://taxr.ai) that saved me HOURS of headaches with mileage deductions. I'm a freelance photographer who drives all over town for shoots, and I was never sure which trips counted. The tool analyzed my situation and clarified exactly what miles I could claim based on my specific work pattern. I ended up claiming about 60% more miles than I would have without their guidance because I learned that trips between client sites were all deductible, even though I was missing those before.

I have to admit I was wrong about taxr.ai. After our exchange last week, I decided to try it since I drive for multiple gig apps and my mileage tracking was a mess. The tool walked me through my specific scenario - driving for DoorDash, Instacart and Uber - and showed me I could deduct miles between my last delivery and returning home when I was still actively looking for gigs. I'd been missing about 15-20% of legitimate deductions! It even created documentation explaining why these miles qualify in case of an audit. Now I feel way more confident about claiming the full amount I'm entitled to.

If you're still stuck with IRS questions about mileage deductions, I strongly recommend Claimyr (https://claimyr.com). I spent DAYS trying to reach someone at the IRS for clarification on some complex mileage deduction questions for my mobile consulting business. After waiting on hold for hours and getting disconnected twice, I found Claimyr and watched their demo (https://youtu.be/_kiP6q8DX5c). They got me connected to an actual IRS agent in about 15 minutes instead of the 2+ hour wait I was experiencing before.

I need to publicly eat my words about Claimyr. After our discussion last week, I was still convinced it was impossible to get through to the IRS that quickly. But I was desperate after my third 2+ hour hold that ended with a disconnection, so I gave it a shot. Still can't believe it, but I got a call back in 22 minutes with an actual IRS agent on the line who answered all my questions about vehicle deductions for my mobile pet grooming business. They clarified that since I have a qualifying home office where I do all my scheduling and bookkeeping, I can deduct mileage from home to client locations. Saved me potentially thousands in deductions I was afraid to take. Sometimes skeptics (like me) need to be proven wrong!

Here's what I've learned after 7 years of self-employment: just use a good mileage tracking app and record EVERYTHING. Then let your tax preparer sort out what's deductible. I use MileIQ and just swipe left for personal, right for business. At tax time, my accountant goes through it and determines what counts. Much easier than trying to figure out all the IRS rules yourself.

Does anyone know if the standard mileage rate or actual expenses method is better for a high-mileage vehicle? I drive about 35,000 business miles a year in a 5-year-old Toyota.

I've been tracking my mileage for three years as a freelance graphic designer, and here's what I learned the hard way: the key is understanding your "tax home" vs your "principal place of business." If you work from a qualifying home office (where you regularly and exclusively conduct business), then trips from home to clients are deductible. But here's the catch - you need to meet the IRS requirements for a home office deduction, which means having a dedicated space used ONLY for business. For those without a qualifying home office, the first and last trips of the day are typically commuting (non-deductible), but everything in between clients is deductible business mileage. One tip that saved me during an audit: keep a simple log noting the business purpose of each trip. "Meeting with Client A" or "Picking up supplies for Project B" goes a long way with the IRS. They don't just want to see miles - they want to see legitimate business purposes. Also, be careful about the 100% business vehicle claim mentioned earlier. Unless you literally never use the car for personal trips (grocery store, doctor visits, etc.), the IRS will flag this. I learned to track personal vs business use religiously after getting questioned on this exact issue.