These three get people in trouble because a shoebox of receipts is not enough.
Car / mileage (Pub 463)
You generally choose standard mileage or actual expenses (gas, insurance, repairs, depreciation) — not a mix on the same car in a way the pub disallows. For 2025 returns the standard mileage rate for business use is 70 cents ($0.70) per mile (Pub 463, What’s New). The IRS sets a new rate each year; do not reuse 70¢ for a later year without checking. A receipt for gas is not a mileage log. Keep date, miles, destination, and business purpose, close to when you drove. Parking and tolls can still be deducted on top of standard mileage. Commuting from home to a regular workplace is generally not deductible.
Home office (Pub 587)
You must use a specific area exclusively and regularly for business — as your principal place of business, a place you meet clients, or a separate structure. Exclusive use fails if the family also uses that room (Pub 587). Exception: inventory storage or licensed daycare in some cases. Two ways to figure: actual expenses (Form 8829 — utilities, insurance, rent or depreciation, times your business percentage) or the simplified method: $5 per square foot, max 300 square feet (Pub 587; Rev. Proc. 2013-13). You pick each year. Simplified means you do not also take actual home expenses or home depreciation for that year. Keep: square footage of the office and the home, or a sketch; proof the space is exclusive; bills if you use actual expenses.
Meals (Pub 463 ch. 2)
Entertainment (games, clubs, concerts) is generally not deductible. Business meals can still be 50% if you or an employee is present and the meal is not lavish — including many meals while traveling away from home overnight. Keep amount, date, place, business purpose, and who was there. A hotel folio that bundles meals should be split.
Not legal advice. Talk to your accountant, especially if you have employees or a vehicle you also drive personally.
FAQ
- Need receipts if I use standard mileage? You still need the log. Keep car records that support the method you chose.
- Kitchen table as office? If the family eats there, exclusive use usually fails.
Not legal advice. Talk to your accountant.