3 Ways You Can Drive Your Car and Cut Your Tax Bill

Episode Transcript

(00:00):
3 ways you can drive your carand cut your tax bill Every mile

(00:03):
you drive for your business ismoney in motion.
Last week, the IRS publishedIR-2024-312, which issued IRS
Notice 2025-5.
This gave business owners abigger opportunity to turn car
miles into tax savings,announcing: A standard business
mileage rate of 70 cents permile.

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A 21 cent per mile deduction formedical related travel and
active duty military can deduct21 cents per mile for your
moving expenses.
For the savvy barber.
This isn't just another taxupdate.
It's a pathway to buildingwealth.
At 70 cents per mile, a 20 mileround trip to the store for

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products or to deposit cash toyour bank creates a$14 deduction
from your taxable income.
Do that weekly and you'relooking at$728 in deductions
annually just from supply ordeposit runs.
So what does that mean in taxsavings?
If you're in the 22 percent taxbracket, those supply run or

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cash deposit deductions couldsave you about$160 in actual
taxes annually.
For mobile barbers or thosejuggling multiple locations,
these numbers stack up fast.
100 miles of business drivingper week becomes$3,640 in
deductions annually, potentiallysaving over$800 in actual tax

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payments, depending on your taxbracket.
The IRS didn't stop at justbusiness miles though.
If you're managing your ownhealth care, there's a 21 cent
per mile deduction for medicalrelated travel.
Those pharmacy runs and doctorvisits?
They're not just necessary.
They're tax deductible.
And it doesn't just stop there.
Active duty military barbersreceive special consideration,

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too.
If you're serving and receiveorders to relocate, you can
deduct 21 cents per mile foryour moving expenses.
In an industry where manyprofessionals have military
backgrounds, this benefitdeserves attention.
Listen, every mile tracked isworking capital for your future.
Those savings can fund yourshop's expansion, investment in

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premium tools, real estateopportunities, education for
advanced services, and muchmore.
These rates are effectivestarting January 1st, 2025.
The IRS is clear personal tripsdon't count but for barbers who
document their miles properly,this change represents a
significant opportunity toconvert necessary business

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travel into wealth building taxbenefits.
So don't leave money on thetable.

Here's your next steps (02:42):
Number one, take a picture of your
odometer in the beginning of theyear.
Listen, this will make trackingyour miles and proving those
miles for IRS purposes, muchmore simple.
Number two, track your miles viaa mobile app to save time.
I personally use QuickBooks totrack every trip I drive.
Number three, review your travelpatterns.

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Could some routes be optimized?
Combining multiple stops intoone trip will maximize both time
and deductions.
Number four, consider a strategyof expanding your service
radius.
That 70 cent deduction meansexpanding your service area
might actually be moreprofitable now.

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Number five, consult with a taxprofessional.
You can maximize thesedeductions by working with
someone whose sole objective isto see your business grow.
The road to building wealthisn't about the hours behind the
chair.
It's about maximizing everybusiness decision including your
drives.
Remember, the most successfulbarbers aren't just great with

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clippers.
They're smart with their money.
The choice is yours, but theclock is ticking.
Don't let the IRS give you ahaircut you can't style your way
out of.
It's your move, boss.