Mileage reimbursement and tax return should sound familiar to the self-employed and small business owners. Do the terms make you scared and worried as you feel overwhelmed by the procedures, or because you don’t know what to do to achieve a higher mileage tax deduction? With this most profitable way to track mileage for work you will never feel the same about mileage log again.
What’s a mileage log and what is it used for?
When you use your car, or a company's car, for business purposes, you can claim mileage reimbursements or write off business expenses. There are certain rules for mileage tax deductions, specifying what business expenses really are.
You can write off mileage you cover during trips you take to meet your clients, or between various branches of your company, but the journey between your house and permanent place of work doesn’t qualify as a business expense.
How to keep business mileage records
Tracking mileage for work according to the rules of the IRS, requires to record the total mileage driven for business, the first and the last odometer reading of the year, the dates, destinations and purpose of the business trips.
There are a number of possible options you can try to keep business mileage records. It is still possible for traditionalists to do pen-to-paper work, or to use a more modern Google spreadsheet or Excel, but the latter is not affordable or time-saving. The most profitable way to track mileage is a mileage tracker app.
To keep tabs of the mileage you can use the standard mileage rate (58.5 cents per mile in the first half of the year, 62.5 in the second half), or actual expense tracking, claiming for the amount spent.
The benefits of using a mileage tracker app
Using a mileage tracker app, such as MileageWise, has lots of advantages. The key benefits include time savings and higher mileage tax deductions over keeping track of mileage on paper. The process is fully automated, and a common dashboard makes it even possible to use the app in case of fleet vehicles.
Choosing the app that is 100% IRS-approved you are sure your mileage log is correct, and under control in case of a control from the institution. What’s more, you can see the distance you or your drivers cover.
MileageWise is a renowned tracking app, giving you an average of $12,00 0 mileage tax deduction for 1 year. You don’t have to worry again about forgotten past mileage - the app will recreate it. If you still feel overwhelmed with the whole process, use the VIP mileage log preparation service.
You may be sure the app is 100% IRS-approved, and with its in-built auditor, you may avoid even 70 logical conflicts. Due to 3+1 automatic tracking modes you will spend more time with your family, instead of completing the logbook.
Try MileageWise for 14 days for free, before setting a transfer from your bank account on a per month basis.