This Question is Answered

1 "correct" answer available (5 pts) 3 "helpful" answers available (4 pts)
Post a new topic
9 Replies Last post: Jun 17, 2008 12:43 PM by Bridge

Mileage Deduction

Feb 12, 2008 7:43 PM

Click to view b2bb2c's profile Professional b2bb2c 5 posts since
Feb 12, 2008

I'm driving over 20,000 miles for my business. Can I deduct the mileage when I'm doing my tax preparation this year?


Thank you!

Report as inappropriate
Click to view LUCKIEST's profile SCORE LUCKIEST 5,737 posts since
Aug 6, 2007
1. Re: Mileage Deduction Feb 12, 2008 9:14 PM
b2, Welcome to this web site. YES you deduct the 20,000 plus miles of business miles.
Do you have an Accountant??
The govt allows you 48.5 cents per mile. In 2008 it goes up to 50.5 cents.
I am sure it is in the instruction manual or Google it.
LUCKIEST
Click to view Lighthouse24's profile Mogul Lighthouse24 2,241 posts since
Oct 10, 2007
2. Re: Mileage Deduction Feb 12, 2008 9:22 PM
You can refer to IRS Publication 463 for guidance and instructions:
http://www.irs.gov/publications/p463/index.html
Click to view b2bb2c's profile Professional b2bb2c 5 posts since
Feb 12, 2008
3. Re: Mileage Deduction Feb 13, 2008 11:58 AM

Thank you for your help.

What kind of proof for the miles should I present to my CPA? I currently don't have a mileage log because it's a pain writing the miles every time I go somewhere. Can I just approximate how many miles I drove or I might get in trouble with the IRS if I can't back it up with a mileage log?


Click to view Lighthouse24's profile Mogul Lighthouse24 2,241 posts since
Oct 10, 2007
4. Re: Mileage Deduction Feb 13, 2008 12:49 PM
in response to: b2bb2c
You need a log to show/prove the mileage. You're right, it's a pain until you get in the habit of writing it down, but after about three weeks, you'll start doing it automatically. I used to keep a little book, but now I just record the mileage on the calendar in my phone after each trip, and then transfer/print it monthly for a record). Some people with GPS phones use the trip records that those provide. There are lots of easy ways to capture the data -- you'll just have to adopt one and use it until it's a routine.
Click to view b2bb2c's profile Professional b2bb2c 5 posts since
Feb 12, 2008
5. Re: Mileage Deduction Feb 13, 2008 1:28 PM
in response to: Lighthouse24

I did some research on the Internet and I didn't find any of the phones you have mentioned but I found a gps device that's probably doing what I need (see www.mileagelogger.com ). I'll give it a try and I'll let you know how it works. It might be too late for the 2007 tax preparation but I'll keep logging my miles this year.
Again thank you very much for your help.
Click to view LUCKIEST's profile SCORE LUCKIEST 5,737 posts since
Aug 6, 2007
6. Re: Mileage Deduction Feb 13, 2008 3:11 PM
in response to: b2bb2c
b2, IT IS NEVER TOO LATE FOR 2007'S TAXES.
If you feel you drove that many miles, you should deduct that many miles
and improve your record keeping for 2008.
LUCKIEST
Click to view Lighthouse24's profile Mogul Lighthouse24 2,241 posts since
Oct 10, 2007
7. Re: Mileage Deduction Feb 14, 2008 1:07 AM
in response to: b2bb2c
b2bb2c, two Blackberry smartphones with GPS are the 8800 and the Curve 8310.
Click to view MP2008's profile Start-up MP2008 1 posts since
Jun 17, 2008
8. Re: Mileage Deduction Jun 17, 2008 10:26 AM
in response to: Lighthouse24

If you are bad at keeping your daily mileage but use your vechicle almost exclusively for business you should look into using MileagePal (www.mileagepal.com) to create you logs. All it requires is a time period and your total mileage and it will generate a daily log. Hopefully this helps.
Click to view Bridge's profile Mogul Bridge 305 posts since
Jun 3, 2008
9. Re: Mileage Deduction Jun 17, 2008 12:43 PM
If you own your own business, you may be better off leasing the car through your business and writing off the whole lease amount plus other direct expenses (gas, maintenance, etc.) - check with your accountant on which option is better for you.

Most Recent Forum Posts

Legend

  • Open Question
  • Answered Question
  • New content since your last visit
  • Updated content since your last visit
  • Content you have read