Most small businesses incur local transportation costs, which may be overlooked if not tracked. Commuting between home and work isn’t deductible. But the cost of local trips made for business purposes generally is, including trips to suppliers, customers or your business bank. You can use actual expenses or the standard mileage rate. Keeping an accurate mileage log noting dates, miles, purpose and costs can help ensure you get the deduction you’re entitled to. Also, for 2026 you can provide employees with monthly tax-free transportation fringe benefits of $680 per employee ($340 for parking and $340 for mass transit passes or van pooling). But your business can’t deduct these costs.
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