Keep track of your Miles!

Mileage – Keep a daily log of the miles driven for business.  There are plenty of apps to help you keep track.  You can also keep a simple spreadsheet with:

the date, number of miles driven and, the purpose/client.

You want to deduct a portion of your automobile expenses.  This includes, insurance, fuel, repairs, car washes, lease payments.

At the beginning of the year write down the number of miles on your car’s odometer, do the same at the end of the year.  Take the difference between the two.    This will give you total miles driven in a year.   Then add up the business miles driven.   You can then determine a percentage between total miles and business miles.

For example, you determine that your total miles driven for the year is 15,000 miles, you then add up your business miles driven and that comes out to 12,000.  The percentage of business miles driven is 80%.  Now you can deduct 80% of all of the automobile expenses.

Have more questions?  Friend me on Snapchat:  @yourbackoffice

Keep track of your Miles!

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