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How to track mileage

Learn how Finaloop helps you track your mileage so you get the best tax deductions you can

Written by Emily Burrows

About

Tracking your miles for business travel can be a great way to get extra tax savings if you're self-employed and file a Schedule C for your business.

Report your business-related trips to access your vehicle tax deduction based on the standard rate per mile. This method is an alternative for tracking your actual vehicle business expenses.

Who is this for? Sole proprietors and single-member LLCs on Finaloop. If you don't see My trips in the sidebar, check your business details in Settings.

1. Tracking your business mileage in Finaloop

If you file a Schedule C for your business (and not Forms 1120, 1120-S, or 1065), here's how to track your mileage in Finaloop.

  1. In the sidebar, click My trips. The Trips history page opens.

  2. Click Add new trip.

  3. Enter the Date, Distance traveled (in miles) and Description. We'll automatically calculate the Amount using the rate per mile published by the IRS for the relevant year.

  4. Click Save.

The Add new trip window with Date, Distance traveled, Amount and Description filled in.

A Trip added message appears and the trip shows in your trips table. Total trips, Total distance and Total in USD show your running totals.

To download your trips for your tax preparer, click Export. To remove a trip, click the delete icon on its row, then confirm in Delete trip.

Your trips are a record for your tax return. They don't change your books or your Profit & Loss.

2. FAQ related to tracking your business mileage

Which miles count?

Business miles you travel that are 'ordinary and necessary' for your business can be a write-off for tax. Some examples include meetings with customers or vendors or visiting a warehouse or post office to manage your shipments. For example, if you're visiting a warehouse that's 20 miles away, you can deduct 40 miles - 20 for the way there and 20 for the way back.

How does the deduction work?

The IRS provides you 2 options to calculate your deduction for car expenses:

  1. Actual expenses: parking & tolls, gas, vehicle insurance, vehicle lease payments, vehicle loan interest, registration, repairs, wash & road services.

  2. Standard mileage: standard mileage rate per mile + parking & tolls.

Finaloop calculates each trip's amount using the IRS standard mileage rate for the trip's year, and shows the rate on the Amount field when you add a trip. You can find the current rates on the IRS Standard mileage rates page.

Need help?

If you have questions about tracking your mileage, contact our Support team through chat or at books@finaloop.com.

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