Mileage Tracking
Guide 17: Mileage Tracking
Track business miles for tax deductions
Overview
If you use your personal vehicle for business, you can deduct those miles on your taxes. OtterLedger's mileage tracker makes it easy to log trips and calculate your deduction using the IRS standard mileage rate.
What you'll learn:
- Setting up vehicles
- Logging trips
- Calculating deductions
- Mileage reports
Time required: 2-3 minutes per trip
Prerequisites
- Vehicle used for business travel
- Odometer readings (optional but recommended)
Setting Up Vehicles
Add a Vehicle
Go to Mileage in the sidebar
Click Vehicles tab
Click Add Vehicle
Enter:
- Name - "2020 Honda Accord"
- Year - Vehicle year
- Make/Model - Vehicle details
- Starting Odometer - Current odometer reading
Click Save
[Screenshot: Add Vehicle form]
Logging Trips
Add a Trip
- Go to Mileage
- Click Add Trip
- Fill in:
| Field | Description |
|---|---|
| Date | Trip date |
| Vehicle | Select vehicle |
| Purpose | Business reason for trip |
| From | Starting location |
| To | Destination |
| Miles | Trip distance |
[Screenshot: Add Trip form]
Recording Miles
Option 1: Enter miles directly
- Enter total trip miles
- Estimate or use mapping app
Option 2: Odometer readings
- Enter start and end odometer
- OtterLedger calculates miles
Business Purposes
Common deductible purposes:
- Client meeting
- Business errand
- Office supply run
- Bank deposit
- Post office
- Business travel
NOT deductible:
- Commuting to regular office
- Personal errands
- Lunch runs
Tip: Be specific. "Meeting with ABC Corp re: project" is better than "Client meeting"
Mileage Reports
View Trip History
Go to Mileage to see all trips:
- Date and purpose
- Miles driven
- Cumulative totals
Filter by:
- Date range
- Vehicle
- Purpose/keyword
Mileage Summary Report
- Go to Reports → Mileage Summary
- Select year
- View:
- Total business miles
- Per-vehicle breakdown
- Monthly summary
- Tax deduction calculation
[Screenshot: Mileage Summary report]
Deduction Calculation
OtterLedger uses the current IRS standard mileage rate:
Total Business Miles × IRS Rate = Deduction
Example:
5,000 miles × $0.67/mile = $3,350 deduction
Rate is updated annually. Current rate shown in reports.
Quick Trip Entry
From Dashboard
If you enabled the Mileage widget:
- Click Log Trip on widget
- Enter trip details
- Save
Batch Entry
Log multiple trips at once:
- Go to Mileage
- Click Batch Entry
- Enter multiple trips
- Save all
Useful for weekly trip logging.
Actual Expense Method
Instead of standard mileage, you can deduct actual vehicle expenses:
Track Actual Expenses
Create categories:
- Gas
- Insurance
- Maintenance
- Depreciation
Track all vehicle expenses
Calculate business use percentage
Deduct that percentage
When to Use Actual Method
- High vehicle expenses
- Older vehicle (depreciated)
- Low business miles
Compare both methods annually to maximize deduction.
Tips & Best Practices
Log trips same day - Easier to remember details
Use consistent descriptions - Makes reports cleaner
Include addresses - "123 Main St to 456 Oak Ave"
Round trips - Log full round-trip miles
Keep odometer records - Annual odometer helps verify
Save receipts - Gas receipts support actual expense method
Troubleshooting
Q: Forgot to log trips
A: Use calendar or email to reconstruct trips. Log with best estimates.
Q: Multiple vehicles
A: Add each vehicle. Log trips to correct vehicle.
Q: What about commuting?
A: Regular commute is NOT deductible. Home office changes the rules.
Q: Uber/Lyft for business?
A: Track as business expense, not mileage.
What's Next?
- Guide 18: Schedule C Report - Include mileage in tax report
- Guide 12: Business vs Personal - Business tracking overview
Need help? Visit the OtterLedger community at github.com/openledger or check the FAQ.