Streamline Mileage Tracking with MapQuest for Tax Deductions

[jrstephens]

I was going through my medical receipts and writing down mileage. I went to MapQuest: Maps, Directions, Gas Prices & Business Directory to get the mileage for them (most of our is over 100 miles one way).

And that got me to thinking that would be a great way to keep up with mileage to shows and you could keep the print out with your other tax receipts.

I am bad about "guessing" the milage b/c I forgot to clock it and I usually under guess! I think I am going to print out my host from last year and check my figures. And start doing this with each show.

 

[climbercanoe3]

Jennifer-
I was doing that for the past few months. I would find my show or meeting address and put it in mapquest. Then I would know the mileage for each activity. Well I found at my last meeting of 2007, that mileage is a sticky one. Supposedly that is one that the IRS is very picky about and you have to have the odometer reading start to finish, not just the mileage. I was bummed, but I am ready to start marking down the mileage now for 2008. Just thought I would share with you.

 

[jrstephens]

I will be up a creek if ever audited then, b/c I have always just put totals in not odometer reading. I can never remember to keep track of that. Guess I need to put a log or something in my car!

Thanks!

 

[DebbieJ]

I keep a mileage log in my car. I log not only mileage to/from shows and meetings, but also when I go to the grocery store, Office Max, etc, for business purposes.

 

[finley1991]

My CPA wouldn't even accept my mileage without the odometer readings. Not worth the flag for an audit.

 

[Kitchen Diva]

how do you think I should handle the fact that for almost 8 weeks straight I had a different loaner car each week while my car was in the shop, and then to boot Ponitac bought my car back and now I have a new car... I just wrote down total miles, because each car had a different reading on the odometer...

 

[lkprescott]

When I've borrowed other cars, I've logged the odometer readings and then marked who's car it was... just to be on the safe side. Odo readings are a MUST. Keep a notebook on your dash or record it on your cell phone (I've forgotten my book and have done the cell phone recording things which works well).. it seems tedious but it's absolute a must in the face of an audit.

 

[DebbieJ]

I wouldn't even count the loaner miles....you don't incur any expense by driving loaner cars.

 

[DebbieJ]

My DH made me a great file in Excel to enter my odo readings. I also do a lot of volunteering with church so I log those miles as well. He's made it very easy for me.

 

[Kitchen Diva]

I wouldn't even count the loaner miles....you don't incur any expense by driving loaner cars.

I had to pay for gas ...and since I was making a monthly payment on a car I wasn't driving doesn't it sort of even out?

 

[RebelChef]

The odometer readings aren't required. There's no place to enter each show's odometer reading on a tax return. It helps to back up your proof but as long as you have a mileage log, the IRS accepts just that. Even in an audit. One thing your return does ask for is beginning/ending odometer readings or total miles driven for the year so you can show the difference between work miles and pleasure miles. So go out and get your beginning reading for the New Year right now while you're thinking about it!

You incur the gas expense in a loaner car but since you have to choose either actual expenses or mileage on your tax return, keep up with the mileage on them anyway. You can't use both so it helps recoup your gas costs.

 

[Kitchen Diva]

The odometer readings aren't required. It helps to back up your proof but as long as you have a mileage log, the IRS accepts just that. Even in an audit.

You incur the gas expense in a loaner car but since you have to choose either actual expenses or mileage on your tax return, keep up with the mileage on them anyway. You can't use both so it helps recoup your gas costs.

Thanks Marisa! I think in total counting my Pontiac, all the loaners and my new car I've driven close to 10 different cars since September!

 

[jrstephens]

Thanks Marisa! I think in total counting my Pontiac, all the loaners and my new car I've driven close to 10 different cars since September!

Goodness! If you don't mind me asking.....why all the switches? That much car troubles?

 

[wadesgirl]

I'm highly forgetful so I have been using the mapquest route. I always print out the directions to my host's house so I log it that way. I have been told by several consultants (including a speaker at conference last year) that this was okay. But what happens if I don't have the start and finish mileage for the year?

 

[finley1991]

But what happens if I don't have the start and finish mileage for the year?

If you have a CPA do your taxes, chances are that person won't allow you to use the mileage deduction. If you do take the deduction without the odometer readings documented, it could send up a red flag for an audit.

It all depends really on who is doing your taxes... like I mentioned before, my CPA won't even consider me giving him my mileage without the odometer readings. He's just as liable as I am if something isn't right, so he won't compromise his integrity over it.

With that, on long trips (like to conferences and retreats which I drive to), when I do a mapquest, I log the odometer readings right on the printed sheets and file them when I'm done. That tip doesn't help now but might this year.

Is it that big of a deal? Probably not. But it is a big deal if you're audited. Is it really worth it?

 

[RebelChef]

But what happens if I don't have the start and finish mileage for the year?

You have the option of either using that OR the total miles driven for the year. I usually just use the total miles because until today, I totally forget to get my beginning and end readings. lol If you don't know the mileage, just make a close guess? See if you have any car repair receipts (oil changes, warranty work, tires, etc) with the odometer readings on them to help you figure it out. When we got audited, the IRS said those would help back up our mileage log.

If you have a CPA do your taxes, chances are that person won't allow you to use the mileage deduction. If you do take the deduction without the odometer readings documented, it could send up a red flag for an audit.

There is no place on a tax return to put odometer readings for each show we do or any of our misc. mileage. More than likely he's keeping it for his own records in case of an audit or his own peace of mind. If every person who was allowed to claim mileage for his/her job, listed each one, the tax returns would be 20 pages long. I don't think even the IRS is willing to go through that much trouble. lol

 

[Shawnna]

My tax lady always asks for beginning and ending odometer readings for the year...not each trip...and then she asks how many miles of that was for business and how many were personal. As long as you have some kind of record to show that is all that matters. The tax form only has a place for miles driven, so the beginning and ending odometer reading is just a backup for your records.

 

[wadesgirl]

That's the stuff no one tells you about, like I said, I've been told since the beginning of my business by several people that as long as I have some kind of mileage record (like on the date of the show in my planner) then I was all right. No one even mentioned about beginning and ending mileage.

 

[ChefBeckyD]

When you log your mileage in P3, it asks for the odometer reading. You don't need to send in your mileage log - on Turbo Tax, it just asks for total mileage - but if you are audited, you have to have your log to prove your mileage.

 

[Intrepid_Chef]

My CPA has NEVER asked for odometer readings.And at work, my mileage sheets have spaces for odo readings, but I am forgetful and tend to mark them in several days after the fact. So I simply put the mileage from the trip. And it has never been flagged as a problem.

 

[RebelChef]

Until now, I kept the mileage log as a spreadsheet in Excel. I wish we could do more than one in P3 so I could keep up with hubby's as easily as I can mine now. lol

 

[sklay723]

Odometer readings...When I first signed, one of the first things my director recommended was for me to go buy a cheap memo notebook (the ones that would fit in your pocket) and keep it in my car somewhere obvious. I'm lousy at keeping up with little details like that, but it's worked really well for me. If I go to the store to get stamps for a mailing, I log it. If I go to someone's house to drop off catalogs or pick up orders, I log it. The more I've done it, the better I've gotten at remembering. I'm still lousy about it sometimes, but it's gotten much easier.
Just another note...my dad reminds me every year to log my miles on Jan 1...not only does that help with business book keeping, it also helps if you report your mileage to your auto insurance company, since they basically base their charges on how many miles you drive each year. If you drive less than their estimate, it could save you money!