Help! Confused About Mileage Deduction for Business Expenses

[angelkatey]

I was told to keep track of any mileage and then was told that mileage to and from a show are not deductable - so what is??? I'm confused. Have been keeping all my receipts for business expenses but wasn't clear on the mileage part. Help!!! Thanks!

 

[cmdtrgd]

Any time you drive somewhere that has something to do with your business, keep track of it. Who told you that mileage to and from a show isn't deductable?

 

[angelkatey]

I think it was the mentor I was assigned to (My director is in another state) - but as with all things, I've been told so many things by so many people, I get confused!!! And sometimes that's not hard for me! ha! So is it deductible for mileage to and from a show?

 

[sailortena]

yep! two and from a show, as well as if you are going shopping for your biz (supplies) your cluster meetings, (and any training), if you have fairs, etc.

I meet with my hostesses at their home or at lunch or place of business and host coach and/or close a show with them and cound that mileage too, and keep track of any meals I eat while talking with them. Those can also be deducted (up to 50%).

The mileage amount default in pampered Partner is wrong, BTW. The IRS sets the federal mileage every year and sometimes makes updates. Currently it is .445 a mile.

 

[priscilla]

MileageYou really should contact the IRS for the ruling on whether or not mileage is deductable.

 

[bbauman07]

This is a section of the tax time tips on the main pc site.


Expenses
Business expenses are deductible if they are considered “ordinary and necessary,” and not personal in nature.
Typical deductible expenses for a Kitchen Consultant may include:
• Business conferences
• Business insurance
• Business legal and accounting fees
• Business license fees
• Business rent
• Business start-up expenses
• Business telephone charges
• Computer software used in
your business
• Depreciation of
business property
• Food samples for business
• Interest on business loans
• Office supplies for business
• Paperwork/forms for business
• Postage for business
• Promotional materials
for business
• Business wages/salaries

We suggest you always consult with a tax advisor regarding the deductibility of your business expenses. Keep receipts and canceled checks to support your business expenses. These will help you in the preparation of your tax returns and will be necessary if you are ever audited. Some expenses require special treatment. For example, meals and entertainment expenses are only 50
percent deductible. Health insurance premiums are 100 percent deductible in 2005 on page 1 of your Form 1040.

If you use your vehicle for business purposes, deductions may be computed in either of two ways. You may take a flat 40.5 cents per mile, plus actual money spent for parking fees and tolls. Also, the IRS has instituted a temporary rate of 48.5 cents per mile for the period from September 1 through December 31, 2005. Alternatively, you may deduct the business portion of your actual
costs of operating and maintaining your vehicle. Such expenses would include gas, oil, repairs, insurance, depreciation, interest, etc. Generally,the miles driven to and from a Kitchen Show® to your home are a nondeductible cost. The miles are treated as a personal commuting expense, unless your home qualifies as your principal place of business. Regardless of which method you use,
it is a good idea to keep a log of your business driving. This can be done informally, even in your
appointment book.

©The Pampered Chef, Ltd., 2005 5I218-122005
Any questions you have on how to complete your tax returns should be directed to your tax accountant. If you have questions regarding the accuracy of your Form 1099-MISC, call The Pampered Chef® Tax
Information Line at (630) 261-8528 or send e-mails to [email protected]. Be sure to leave your name, Consultant number and phone number with area code. Calls will be answered in the order they are received.
Your Home Office
Two criteria must be met to qualify your home office as a principal place of business:
• the home office is regularly and exclusively used for business connected administrative or
management work.
• there is no other fixed location where you conduct substantial administrative or management
activities for your business.

 

[bbauman07]

I hope that helps

 

[angelkatey]

Thanks!!! . . . I think!!! Needless to say, I won't be doing my own taxes anyway but will keep records as accurately as possible! This site is great for help!

 

[pampered1224]

I have my taxes done professionally...and have had them done every year for 5 years. YES your milage is deductable. NO QUESTION, NO DOUBT! And unless we have all been cheating the IRS for the last 25 years, there is no need to go to the IRS to confirm anything.
H&R Block does my taxes. And with all the penalties out there for the preparers of taxes, they cetrtainly are not going to intentionally make a mistake. It would cost them money!
So keep track of everything. Even if it is only half a block to your local store.

 

[bbauman07]

Your right John. H&R did my taxes also. I was able to claim my mileage also.

 

[lisacb77]

I keep track of it all too...and it IS 44.5 cents. The info on CC is wrong. I checked IRS for that.

 

[mommyhugz1978]

Your right John. H&R did my taxes also. I was able to claim my mileage also.

I turst my dad for my taxes and bookeeping servies.. My familly has four HR Block Franchies.... my team gets a good deal on taxes...... curtousy of me!!!! LOL

 

[pckimboyers]

Should we count the mileage when taking our children to a babysitter to do a show? I haven't been counting this...but just curious.

 

[cmdtrgd]

Personally, I would.

 

[mommyhugz1978]

I would ask a tax professionsal or write down the millage and then when it is time to do your taxes next year.. ASK!!!

 

[bbauman07]

I keep track of it all too...and it IS 44.5 cents. The info on CC is wrong. I checked IRS for that.

That is the tax tips from 2005. So i'm sure the rate has changed.

 

[Chefweezie]

I keep a pocket calender in my car (or in my pocketbook if I'm driving my husband's vehicle) and record all business related mileage in it. That includes trips to the bank to make deposits, post office, grocery store, shows, picking up and dropping off orders,fairs, meetings ANYTHING related to my business. I have an accountant prepare our taxes. I also keep all receipts to put with tax documents. Hope this helps.
Mileage for this year is .445 per mile. Checked with my accountant the other day.

 

[iddlebiddle]

Does anyone know how to go in and change the mileage amout in PP so you don't have to do it everytime you enter your mileage?

Thanks