GUIDE

What mileage-deduction mistakes do solo contractors make?

Q: What mileage-deduction mistakes do solo contractors make?

The most common mistakes are failing to record the business purpose of trips and neglecting to log mileage weekly. TradesTimer prevents this by using background GPS to automatically detect stops and trips, reconstructing your workday without manual entry.

Missing Trip Details

A valid IRS mileage log must record the date, destination, business purpose, and total miles for every trip. Many contractors simply note the total miles at the end of the month, but this lacks the necessary detail for an audit-ready log.

Without the specific business purpose for each trip, the IRS may disqualify the deduction. Automated logging ensures every trip is captured with its distance and location intact.

The 'End-of-Month' Trap

Waiting until the end of the month or year to reconstruct your driving history is a major error. To be considered contemporaneous, mileage logs should be updated at least weekly.

This information is for general purposes and is not tax advice. Relying on memory leads to missed trips and inaccurate mileage totals.

Rate Miscalculations

Using the wrong mileage rate can lead to incorrect filings. For example, the IRS business standard mileage rate is 70 cents/mile for 2025 and increases to 72.5 cents/mile for 2026.

Failing to apply the correct rate for the specific tax year can result in underclaiming or overclaiming your business expenses.

FAQ

What are the essential components of a valid IRS mileage log?

A valid log must record the date, destination, business purpose, and the number of business miles per trip.

How often should I record my business mileage?

You should keep your records contemporaneously, meaning you should update your logs at least once a week.

Last updated 2026-06-08.