Business deductions

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ed4copies

ed4copies

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With the usual, "I am not an accountant" caveat, I do read a lot.

Today, reading a financial related mag, I came upon a piece of advice that has been "escaping" my attention.

They pointed out that "business miles" can be claimed, at a rate of 55 cents per mile and that includes trips you make to pick up supplies. To me, that means every time I have gone to WoodCraft (60 mile roundtrip), I could be claiming $30!!!

This year, I will not forget this, as I have in previous years.

Remember, before following any advice, I am not an accountant. You should have your tax professional handle all such matters. You should probably consult with your attorney, before following any advice given here. Your wife may have an opposing opinion (enough disclaimers???)

FWIW!!
 
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Ditto on the I am not an accountant caveat, however to also point out if you use your car as a company vehicle, you can write off your gas, repairs, tolls, etc. which usually (stress usually) will get you more than the standard write off of .55 a mile. However typically your company vehicle is to be used for company stuff only. I just keep a travel log and write down all mileage that is business related.

(Again I am not an accountant or tax professional. Please seek one out if you have questions and do not say this guy said.... and then sue me. Thanks =} )
 
jttheclockman said:
Do it all the time. You can deduct travel to your shows also if you are not doing that already.
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No, been doing that, John. But this year, that number will drop from 4 figures to SMALL figures, so I'm happy to find this addition.

OF COURSE, Your Mileage MAY vary!!!!
 
Get a mileage book, I know some office supply stores have them,( you have to use one),for (every) mile you use business or other.
You might want to figure car expense verses ,mileage. As the 55 cents, counts for total expenses for that car or truck. In other words if you need new tires, gas or worse ,you cannot count it ,if you count mileage. You cannot count what it (car or truck) cost either ,when you count mileage.
business not hobby
So if you want to buy a vette, to do shows and go get wood and supplies in ,you might want to count the expenses of your vette instead of mileage.

This is an example ,It would be hard to sell enough pens to afford a vette.
PS don't take my word go to someone that does this for a living I do...
 
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Get and keep a log book. Your accountant will appreciate it, and it will serve you well if audited. You should do this if you use a personal vehicle for busness purposes, or have a business vehicle you ever use for personal purposes.
 
witz1976 said:
However typically your company vehicle is to be used for company stuff only. I just keep a travel log and write down all mileage that is business related.
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You don't have to use the vehicle for 100% business purposes, but if you do it makes the calculations easier as it's 100% of total mileage at the .55 rate (or whatever they adjust it to as it changes at least once a year) or 100% of actual expenses.

Now if you have a combined vehicle (business and personal use) you need to keep the log so you can determine the ratio to book the expenses with. In that case it will be either the business mileage at the .55 rate OR the ratio of business use (20%, 59%, 80%, etc) of the actual expenses.


And I AM and accountant, but please don't sue me.
 
I believe the rate for 2009 went from 55 cents per mile to 58.5 cents per mile in the second half of the year. The adjustment was due to the rising cost of gasoline. The rate for 2010 is set at 50 cents per mile for business..

Jim Smith
 
I leave those little wrinkles to TurboTax. I just have to remember to include trips to WoodCraft and Harbor Freight!!!

OH, BOY!! Now when I have a tough day of shopping for needed items for my shop, I will have that "warm, fuzzy feeling" knowing that Uncle is sharing the cost!!!

Remember, Barack told me he'd cut my taxes---by George, he did!!!
 
Nah, I've never amended.

Just put a little note with the last few years, "One I know I missed". Then, if they choose to audit, I can start with my KNOWN missed deductions.

Always good to start off on the right foot---"You're right, Mr. Auditor, I DID pay too much---thanks for the reminder!!"
 
Also as you keep your log the IRS requires that you list date, beginning mileage, ending mileage, destination and purpose for each trip. So it would be:
March 8 120,000 120,060 Milwaukee Pen supplies

Of course you only need this if they audit you!:biggrin:
 
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