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Real estate & rental

Real Estate Agent Mileage Calculator

Business mileage and what the standard rate deduction is worth against your tax.

Your numbers

Set annually. Check the current figure.
%
$
Fuel, insurance, maintenance, depreciation.
%

Result

Standard mileage deduction $7,370
Business miles per year 11,000
Tax saved $2,211
Actual expense method $6,440
Better method Standard mileage
11,000 business miles gives a $7,370 deduction, worth $2,211 in tax. The actual expense method would give $6,440, so Standard mileage is better here.

Not tax advice. Deduction rules, mileage rates and self-employment tax treatment change annually and depend on your entity, your state and the rest of your return. Use this to plan a set-aside, and confirm the actual figures with an accountant before filing anything. The standard mileage rate changes every year and sometimes mid-year. Choosing the actual expense method in the first year a vehicle is used restricts your ability to switch later, and either method requires a contemporaneous log rather than a reconstruction.

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Questions

About this calculator

Do I need a mileage log?

Yes, and it needs to be kept as you go rather than recreated at year end. Date, destination, purpose and miles is the standard expectation.

Does commuting count?

Generally not. Driving from home to a regular office is commuting; driving between showings, to listings and to closings is business. The distinction matters and is frequently examined.

The formula

standard deduction = business miles x the standard rate; actual = vehicle costs x business use share

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Estimating is the easy part

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