Business Purpose
Quick definition
The IRS-required reason for a drive. Without a business purpose, the mile is personal.
Every deductible mile must have a business purpose. The IRS requires it as one of the four pieces of information in a complete mileage log: date, destination, business purpose, miles.
What counts as a business purpose
- Meeting with a client, customer, or prospect
- Driving to a job site
- Picking up business supplies
- Driving to a conference, training, or industry event
- Driving between two business destinations
- Driving with passengers/orders during a gig shift
- Repositioning during a gig shift (deadhead miles)
What does not count
Personal errands, family pickups, social trips, your normal commute, or drives where the business angle was incidental ("I made a business call while driving to the grocery store" does not make it a business mile).
Documentation in practice
A short phrase per trip is fine: "Client meeting at Smith Co.," "supply pickup Home Depot," "Uber shift downtown." A blank purpose field is the most common cause of disallowed mileage in IRS audits.
Related terms
Contemporaneous Log
A mileage log created at or near the time of the trip. What the IRS expects to see in an audit.
Commuting Rule
Drives between home and a regular workplace are personal, not business. Several exceptions apply.
Deadhead Miles
Business miles driven without a paying customer or revenue at the destination. Still deductible.
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