3 Easy Steps to Calculate Gas Mileage
Employers and self-employed are charged business mileage deduction by the IRS. This is a charge for using your vehicle for business purposes. Because the IRS has a workable system in place to determine the use of your vehicle for business or personal purposes, it is next to impossible to invade this deduction. It then becomes a responsibility of and a requirement for every self-employed to keep record of their monthly business travels for taxes and business expenses purposes.
Many have found it a bit challenging keeping accurate records, especially in knowing which travel counts towards business expenses and which does not, what to include and ultimately, how to calculate gas mileage for businesses expenses and tax purposes.
Here is the good news!
As scary as it may sound, figuring out what your gas mileage is, is very easy and involves simple few calculations. With access to the right app (mileage tracker apps) and tools (mileage calculator), you’ll breeze through it like a pro.
The best part is that some of the mileage tracking apps and gas mileage calculators are free to use.
Step #1: Fill Up Your Gas Tank & Record Odometer Reading
A major requirement of the IRS to ensure you claim mileage on your tax returns is to keep accurate record of your business mileage.
The first step to ensuring your gas mileage is accurately calculated is to fill up your gas tank with gas. It doesn’t matter whether it is half tank, three quarter tank, almost full or completely empty, fill up your car all the way to the top and don’t be clicking the pump.
Just let the pump shut off by itself once the tank is full. Do not round it up to the next dollar or to the next gallon.
Be sure you have written down your odometer reading prior to filling up your gas tank. If not, you can just reset the mileage counter to zero before driving off.
Step #2: Drive. Go About Your Normal Business
Next, you’ll just have to get in your car and drive away on your normal routine for a couple of days. Going to work or taking the kids to school or going to deliver goods to a customer, just drive your car normally. You don’t necessarily have to go all the way down to empty but the more that you drive on the tank of gas the more accurate your number will be as it will compensate for the days where you may get stuck in traffic and your gas mileage consumption be a little bit better. When it comes time that you need to refuel your gas tank head back to the gas station you used before, try to use the same fuel pump as before and if possible, pack the exact way you did the last time and fill up again.
Step #3: Calculate Mileage
Use the gas mileage calculator provide above to calculate mileage. To do this just put in the related readings and the tool will instantly calculate your gas mileage.
Start by filling in the Final Odometer Reading (Miles), this is your current odometer reading. Then fill in the Starting Odometer Reading (Miles), which is the reading you took down before refuelling or zero, if you reset the mileage counter to zero before driving off. Now type in the total amount of fuel used during this period in gallons. The calculator will autofill the Total Mileage Travelled (Miles), Total Cost of Gas Used ($) and the Gas Mileage (MPG).