Auto, Travel, and Mixed-Use Assets: Maximizing Deductions Safely
Cars, travel, and assets like laptops often have both personal and business use. The IRS allows deductions—but only if you follow the rules.
Automobile Expenses:
- Deduct mileage (using the IRS standard mileage rate) OR actual expenses (gas, insurance, repairs).
- Keep a mileage log or use an app—no log, no deduction.
Travel Expenses:
- Flights, hotels, rental cars, and 50% of meals are deductible if the primary purpose is business.
- Conferences, client meetings, and site visits qualify.
Mixed-Use Assets (e.g., cell phones, laptops):
- Deduct the percentage used for business.
- Example: If you use your phone 70% for work, 70% of the bill is deductible.
Why Documentation is Key:
- IRS audits often target auto and travel deductions.
- A clear log or receipts protect you and maximize deductions safely.
👉 Pro Tip: Always separate personal and business trips—blend them and you risk losing the deduction.