Recording owner's mileage

Then how should a person enter it into quickbooks online?

How would you enter it into quickbooks if it is for tax deduction only?

You keep a Mileage Log. If that is used on the tax form that results in an Allowance, this is a "not real money" event. If you want to enter it into the bookkeeping, it becomes an immediate wash for the prior tax year. Example:

I make a Journal Entry dated Dec 31, 2018 to Debit Mileage Allowance Expense and Credit Owner Equity. On the very next date, Jan 1, 2019, I see that all expenses and income as Net Income, already part of equity in last year's balance sheet, rolled into Owner Equity for this new fiscal year. That means what I entered dated yesterday just offset itself, as both parts now are in Equity, as part of Retained Earnings. So, you don't need to bother to enter it into QB at all, or you can, but it only affects that Tax year reporting. It changes nothing for the later year.

I understand what you mean about deduction, but I'm a user that takes actual expenses.  How do I record mileage billed to a customer?  I have "auto mileage expense" - Debit; Credit???; Company receivable - Debit; reimbursement income - credit.  I can't think of what to put in that first credit.

---

@Rustler wrote:

mileage is not an expense in accounting.

It is a tax time deduction you can take, if and only if, you do not take the actual expenses of operating a company car.

---

Are tolls on my personal vehicle being used for a business trip an expense in accounting?

So in 2020 circumstances have changed and only a few business type can deduct on 1040 (see form 2106). So, as the owner where does the deduction go on the 1120 return so its an expense to the business and a check written to the employee.

Additionally, If I want the money to become part of owner's equity instead of a check what additionally must be done?

  Answer:  In the case of owning your own car and you incur mileage, you should record the $545.00 as mileage under "Auto" and corresponding entry would be to credit a loan to Shareholder (If there is a balance) and if no balance there hit Loan from Shareholder.  Th company owes you the money.  You don't have to take now, but keep it on the books just in case you need to take some money out of the company.

AUTO:

Debit Mileage of $545.00

       Credit Loan to Shareholder or Loan From Shareholder $545.00

If you would like to track owners' miles as an mileage expense account, you can do so by using Personal Expenses Equity account in QBO. You can create this in charts of accounts if it not already there.

You will need to make sure you have a bank account set up as a "mileage account". You will need an expense account set up as "milage expense". You can set up the owner as a payee vendor for better tracking. (This is different than employee where you would have the employee and issue reimbursement expenses for mileage). If the owner is also the employee of the company you might find it better to process as an reimbursement expense account instead of using personal expenses equity account. 

A simple way of entering and tracking the data would be to first expense the mileage transaction between mileage expense account and mileage account bank. Second, you remove the expense from the balance sheet by +new and transfer funds from personal expenses equity account to transfer funds to mileage account bank. (Another option is to record journal entry).

In sum, this is best for owners' mileage expense tracking, it might be easier to simply use the mileage tracking in QBO instead of expensing. 

This is not a correct answer and it's scary that it is so popular.  The original question related to business miles.  So yes, you would take business miles x the IRS rate for the year (or something lower).  The debit would be to Auto Expense and the credit, could be to Owner's Draw or a Notes Payable to the Proprietor.  The advantage of doing it this way is you can see your actual profit and loss.  And even if you choose to use actual expenses (not the standard mileage rate) on your tax return, there is nothing that says your books and your return have to match as long as you can account for the differences if someone asks.  (Book vs. tax)     

Sam -- Which answer were you referring to when you wrote "This is not a correct answer."?  One answer said that business mileage  does not need to be entered in QB but rather we just keep a record of business mileage and deduct the expense on your taxes using the IRS per mile allowance. 
Is that a correct option or is best practice to track owner's mileage expenses in QB accounts?
Or, both?

Here are two scenarios  I have:

1. The owner used his wife's car on a 500 mile business trip. The company paid for gas. But the owner wants to track the car usage as an expense and take whatever deduction is appropriate.

2.  The owner uses a company owned car for business travel on a regular basis.  Fuel is paid for by the company.  We want to track this mileage and take whatever deduction is allowed.

Thanks in advance for your help!

Three ways of looking at it to help you crack it

1. Assume it was a hired car 

2. Assume it's a your own car 

3. Assume it's a company car 

These scenarios ought to give you a sort of similar treatment.

1. Hired car 

Dr Travel expenses 

Cr Cash 

2. Own car 

Dr Travel/Mileage expenses 

Cr Cash or Director's loan/current account 

3. Company car 

Dr. Auto expenses 

Cr Cash (for fuel and repairs en route etc)

All these should be treated in a similar manner though values may differ (understandably)