Mileage Tracking Saves Thousands of Dollars {Video}

Mileage Tracking Saves Thousands of Dollars {Video}

Mileage tracking is the act of documenting business use of a vehicle. The IRS has strict mileage deductions regulations and will disallow improperly documented mileage and auto repair expenses.

Due to the strict IRS regulations, mileage tracking is a commonly missed deduction. There is a limit to the dollar amount of deduction allowed for auto expenses. Only a percentage of the auto expenses are actually deductible when using a vehicle for business and personal use.

Many of my customers gasp, at the end of the year, once they realize the amount of the lost deduction from poor record keeping.  There’s good news! I am going to give you steps to properly document your mileage to save you thousands of dollars.

You can use the following guide lines for tracking mileage, If you drive your car for your business or if you are an employee and you use your vehicle for your job.

 

odometer reading

1. Record Odometer Readings:
Record your odometer reading of the vehicle from start/ending of every trip. The difference is the miles driven for a business trip.

 

2. Record the number of miles driven to and from a business event.car for mileage blog

 

3. Document the business event/meeting address /location

I use an app as well as print a Google map, even if I know the trip destination, and I feel confident the mileage matches the map and the app documents the address, location, and beginning and ending odometer reading.

 

4. Properly list the business reason of the meeting

Networking is advertising and/or connections. Your goal, at networking meetings,  is to build clientele as well as referral connections to support your clients. This is a business purpose. A PTA meeting is not networking. This is a personal meeting. Meeting clients or partners to discuss your services/products. Attending an event for which you managed as part of your services is a business event. .  This would include planning meetings, financial, legal, employee, contractors, trainings and any item associated with your business.

example mileage log

5. Date and Time

The date and time of the meeting is important. It should coincide with the meeting miles

 

6. Record the name of the person, client, partner, etc. of whom you are meeting. 

Meetings with partners, clients, professionals, i.e. accountants and or lawyers, designers, and other consultants

 

Qualified documentation is a log, spreadsheet or an app.  An app makes it easier!  Consider training on an app.

My favorite mileage app is Trip Log.  Trip Log mobile application is $10 for the year and starts with one touch to the app when used with Google Maps.

 

Trip Log Link Image

 

 

 

 

Click Here to See a Video on Trip Log

 

Tracking mileage will become a habit with practice!  You will save thousands of dollars from miles driven and expenses by a few simple mileage tracking steps.

 

Tip: Exceptions for Non-Business Mileage Deductions

The IRS allows non-business related mileage deduction for medical travel – Driving someone back and form between facilities to help them.  Travel to deliver a person or items to assist qualified charitable organizations.  Travel for a recommended physician for out of state travel for individual illness.

 

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