You know you should be tracking your mileage, you’ve heard it gives you deductions, but how?
Tracking every mile! Who does that?
As a tax strategist… I have seen clients save thousands in taxes by tracking and claiming their business miles. The current 2019 business mileage rate is $0.58/mile. Just 1 mile a day would be over $200 as an annual business deduction!
ONE MILE A DAY PEOPLE! Just think of how much you could save if you drove more. (Tell a story about what you have seen)
The IRS requires that you track and record your mileage, for the business deduction.
This can seem a daunting task at first when you think about tracking your miles for the whole year.
I mean every single mile!
However, if you’re using your vehicle for business, you need to start keeping a record of all your miles.
Don’t worry. I got you covered. You’re in the right place.
What is the problem with just guessing or using the same miles as last year?
I often hear clients say that they drove the same miles as last year. Some tell me. “Just put the same amount as last year, doesn’t matter.” or they give me a round number.
The problem is that the records need to be the actual miles driven, not just an estimate.
How do you even keep track of that?
You have choices: you can do a pen and paper mileage log or an app on your phone.
Don’t worry, there are some apps to make it as simple as a swipe on your phone after each trip. This will save you countless hours trying to remember to write it down each time and will create a record in real time. This is important in case you get audited.
My favorite free app is MileIQ, this one is very easy to use and it is free for up to 40 trips a month. (Show how to use)
I like the Quickbooks Self-Employed app for its ability to track miles and expenses. (Show how to use screenshots)
Prefer a traditional pen and paper? Try this Mileage log or one for travel miles and expenses will help you save, come tax time. (Show how to use)
