Monday, 12 September 2022 12:10

How to keep a fully IRS-compliant mileage log

IRS compliant mileage log IRS compliant mileage log pexels

Whether you're self-employed or own a small business, you'll likely want to know how to keep a fully IRS-compliant mileage log to deduct business mileage. Identify what is deductible, check what mileage tracker apps are worth using, and find out what the requirements are.

 

IRS’s mileage log requirements

The system has requirements that you need to meet if you are going to keep an IRS compliant mileage log. It is necessary for you to keep records of details of business trips in order to get a mileage tax deduction. These include each business trip’s mileage, the number of miles you drive a year, the trips' times, locations or destinations, purpose, and year-end and start-of-year odometer readings.

There are two ways of getting write-offs or tax deductions. One of them is using the IRS’s standard mileage rate, which is 2022 is 58.5 or 62.5 cents per mile driven. You may also try the actual expenses method, which requires you to collect itemized receipts, which are proof of fixed or variable expenses.

What miles are deductible?

If you travel a lot for business purposes, it’s recommended to check the list of mileage examples that are deductible. 

First and foremost, your business errands should be present in mileage records for business purposes, for example when you have to collect work-related supplies. 

It’s pretty obvious all business trips are deductible when you travel to meet your client. It is quite the same for business lunches with your clients or suppliers, or the trips between your company premises. 

It’s worth mentioning that even if you need to drive to the gas station after work, it will count as mileage for tax return possibilities.

How to keep a mileage log 

There are a number of possible options for running records for the purposes of mileage reimbursement, both the basic and more traditional ones and those more modern like tracking apps. 

Those who prefer keeping the fleet management manually, find using a mileage log template for excel useful. Some other self-employed or small business owners prefer using a google sheets mileage log template. These are effective, yet time-consuming options.

To save time, it’s worth using an automated system, which requires us only to enter the details, and the dedicated mileage tracking app will check and correct the records.

MileageWise as a mileage tracker app

MileageWise offers a mileage tracker app, perfect for the purposes of mileage reimbursement, write-offs, and tax return. It’s a great option for fleet management, as you always know where the drivers are, so tracking a free driver is quite simple. It’s kind of your stock advisor, giving you proper and clear information about cars, drivers, and mileage logs.

 
  • Embrace Effortless Touch-Ups with Hair Root Cover Up
    Embrace Effortless Touch-Ups with Hair Root Cover Up

    Maintaining vibrant and flawless hair color is an ongoing journey, and for many women, the telltale signs of regrowth can be a source of frustration – we’ve all been there. Fortunately, there is a solution to this problem: hair root cover up. In this article, we'll explore the wonders of this product, providing you with insights into how it can effortlessly revive your hair color between salon visits. We invite you to read on!

  • Seattle Public Transportation Access: Commuter-Friendly Apartments
    Seattle Public Transportation Access: Commuter-Friendly Apartments

    Seattle, a bustling city with a diverse and ever-expanding public transportation system, offers an array of commuter-friendly apartments. For those looking to minimize their reliance on a car, living in a location with easy access to public transportation is a key consideration. This article explores the benefits of choosing an apartment with convenient public transportation access in Seattle and how to find one that suits your needs.

  • The Essence of Amethyst Jewelry
    The Essence of Amethyst Jewelry

    Amethyst jewelry has long been cherished for its captivating beauty and spiritual significance. With its mesmerizing violet hues, amethyst is not only a stunning gemstone but also carries a rich history and symbolism. In this article, we will delve into the allure of amethyst jewelry and learn how to care for it to ensure its longevity and radiance.

  • Hair Transplants for Women: Restoring Confidence and Beauty
    Hair Transplants for Women: Restoring Confidence and Beauty

    Hair transplants empower women to regain confidence and beauty by addressing common hair loss causes. Choosing the right clinic and preparing adequately for the procedure are crucial steps. With various techniques available, proper aftercare is essential for successful results and self-esteem restoration.

  • Choosing the Right Stock Images
    Choosing the Right Stock Images

    Discover the benefits of using stock photos and provide tips on how to make the most of them for your online endeavors.