When Is Driving Deductible? Understanding Business Mileage Deductions in the US

What are examples of business mileage deduction in the US?

Business mileage deductions provide tax relief to employees and self-employed individuals who use their vehicles for work-related travel. The IRS allows taxpayers to deduct costs associated with business driving, but only under specific conditions. These deductions reduce taxable income, provided they are properly documented and meet IRS criteria. Below are key examples that illustrate what qualifies as deductible business mileage in the United States, along with the regulatory framework that governs them.

Client Meetings and Site Visits

One of the most common business mileage deductions involves travel to meet clients, visit job sites, or conduct offsite work. For example, a field technician driving to various customer locations for repairs or service qualifies for a deduction under IRS rules. Similarly, a sales professional commuting to client meetings or demonstrations outside of their primary work location can log those miles as deductible business travel.

This type of travel must be ordinary and necessary to the trade or business, and must occur away from the taxpayer’s regular work location to be deductible. Travel from home to a regular office is considered commuting and is not deductible.

Temporary Work Assignments

If an employee or contractor is assigned to a temporary location outside of their main work area, travel to and from that site is generally deductible. According to the IRS, an assignment is considered temporary if it is expected to last, and actually lasts, for one year or less. For instance, an engineer working on a six-month project at a remote facility may deduct mileage for the daily roundtrip from home to the temporary site.

However, if the assignment exceeds one year or becomes indefinite, the location is treated as a new principal place of work, and commuting rules apply. Therefore, it is essential to monitor the duration and nature of temporary assignments.

Travel Between Offices or Job Locations

Employees who travel between different work locations for the same employer on the same day can deduct that mileage. For example, a consultant who drives from a main office to a satellite office to conduct a workshop is eligible to deduct that distance. Likewise, a technician traveling from a company warehouse to a customer location may log that mileage as business-related.

This rule applies only when both locations are considered legitimate work sites and not personal or commuting locations. Documentation should include dates, destinations, and business purposes for the travel.

Conference and Training Attendance

Driving to a business conference, training seminar, or professional development course is another valid example of business mileage deduction. These events must be directly related to the taxpayer’s job or business. For instance, a healthcare administrator driving to an industry convention or a project manager attending a certification workshop may deduct the miles traveled.

To qualify, the education must maintain or improve skills required in the taxpayer’s current role and not be part of a program to qualify for a new trade or business. Supporting documentation such as registration receipts and event agendas may help substantiate the deduction.

Errands and Supplies for Business Use

Running business-related errands, such as picking up office supplies, delivering products, or depositing checks at the bank, qualifies as deductible mileage. A self-employed individual driving to a print shop to collect marketing materials, or an office manager delivering packages to a courier service, may deduct those trips.

As with other categories, the purpose of the trip must be clearly documented. Mixed-use trips, where both personal and business errands are combined, should only include the portion of the journey directly related to business.

Travel to a Temporary Worksite Outside the Metropolitan Area

When travel involves destinations outside the taxpayer’s normal metropolitan area, such as for overnight business trips, all driving from the hotel to meetings, meals, and client visits is generally deductible. For example, a regional sales representative traveling from Chicago to Indianapolis for a two-day pitch to a prospective client can deduct all business-related miles driven during the trip.

IRS guidelines specify that travel must be away from the “tax home,” which typically refers to the location of the main place of business. To qualify, travel must be substantial enough to require sleep or rest.

Mileage for Self-Employed Professionals

Self-employed individuals often have broader eligibility for mileage deductions, provided they document their driving and operate under accountable plans. For example, a freelance photographer driving to client photo shoots, or a real estate agent showing homes to buyers, may deduct all qualifying mileage.

These individuals must maintain detailed logs and adhere to IRS rules for substantiating business expenses. Apps that automate mileage tracking and reporting can help streamline compliance.

Mileage Tracking and Compliance

To deduct mileage, taxpayers must maintain accurate records that substantiate each trip. According to IRS requirements, documentation must include:

• The date of travel
• The starting point and destination
• The business purpose
• Odometer readings or total mileage driven

Mileage tracking apps are increasingly used to fulfill these documentation needs. Tools like Cardata Mobile provide automatic tracking, real-time logs, and digital storage, reducing administrative burden and ensuring tax compliance.

Employers using accountable plans must also ensure excess reimbursements are returned and that reimbursements stay within the IRS standard rate, which is $0.70 per mile for 2025.

Non-Deductible Mileage Examples

It’s equally important to understand what does not qualify for a mileage deduction:

• Commuting from home to a regular workplace
• Personal errands or mixed-purpose trips without business justification
• Driving to a new job location for job-seeking purposes
• Unsubstantiated mileage without proper documentation

These types of travel are explicitly excluded from business mileage deductions, and including them could result in penalties or tax adjustments.

Business mileage deductions provide meaningful tax benefits but come with strict criteria and documentation requirements. Common deductible scenarios include client visits, temporary worksite travel, office-to-office trips, and professional development-related driving. By understanding these examples and aligning practices with IRS guidelines, both employees and self-employed individuals can optimize their reimbursements while maintaining full compliance with tax regulations.

Disclaimer:

The content provided in this blog is for informational purposes only and is not intended as legal, financial, or tax advice. While every effort has been made to ensure the accuracy and reliability of the information at the time of writing, Cardata and the author assume no responsibility for any errors or omissions. Readers should consult with a qualified professional to determine how any information discussed may apply to their specific circumstances.