Keeping Track

MILEBUG APP

If you're like me, you don't relish the idea of keeping a detailed mileage log for your business miles driven.  But it is required for taking deductions on your tax returns, so anything that can make it easier to do, is a plus in my book.  Recently, I downloaded an App for my iPhone and iPad called MileBug and it not only does the job well, but makes it very convenient to use.  You may want to check it out.  MileBug gives you the ability to not only easily enter odometer readings and parking fees or tolls, but it lets you store information about frequent trips so all you have to do is select a trip you stored in the past as a "favorite" and MileBug populates all the necessary fields.  It even has a GPS tracking device you can turn on or off, so that it will calculate the exact mileage driven for each trip you make.  Best of all, it only costs a few dollars and works on iOS or Android phones and tablets.

 

Whether you travel for your employer for business purposes or you own your own business, you must keep written logs in order to take the vehicle deduction.  I used to write down the mileage by hand in a notebook, with the date, time and odometer reading, along with the destination and business purpose.  This always took a lot of time.  And, of course, it also meant remembering to make these entries both at the beginning of each trip and at the end.  Sometimes, my notebook would get misplaced from time to time. With MileBug, it's just a few clicks on my phone, and done!  I can print reports anytime and sort the information by date or business purpose or vehicle. The data can be pulled into an Excel spreadsheet. MileBug not only tracks the mileage driven for each trip, but it calculates the dollar deduction as well, based upon the current IRS standard mileage rate for business, charity or medical purpose, depending on which one you select for a given trip.

If you think you can get away with taking the deduction for your vehicle usage and not keeping a mileage log; think again.  If you get audited, the IRS will ask for these records, and if you cannot produce them:  No Deduction.  You'll also pay penalties and interest on any additional tax you may owe because of it.  So, if you travel a lot for business, I suggest taking a look at the MileBug App.  You just may find that keeping the required mileage log is not so much work after all.  I have no affiliation with MileBug.  It can be found on iTunes or simply at MileBug.com

 

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Saturday, 20 October 2018

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