Just curious how everybody here is tracking their miles. Paper? An app? A spreadsheet?
You need to track the destination and business purpose of your trips. Does this mean you track every trip you take during the day. Say five different trips for five different appointments? Or do you just track the total miles per day?
Is it true that every single mile for business purposes (ie driving to a leads town) is worth $.535?
Suppose you drive 1000 miles a week 52 weeks a year for 52,000 miles. Thats 52,000 * .$535 = $27,820. Let's say you made $100,000 in profit that year. Would you deduct $27,820 from $100k and be taxed as if you earned $72,180 that year? Or would you deduct the $27820 from your entire tax bill? (I assume it's the former, because the latter sounds too good to be true.)
You need to track the destination and business purpose of your trips. Does this mean you track every trip you take during the day. Say five different trips for five different appointments? Or do you just track the total miles per day?
Is it true that every single mile for business purposes (ie driving to a leads town) is worth $.535?
Suppose you drive 1000 miles a week 52 weeks a year for 52,000 miles. Thats 52,000 * .$535 = $27,820. Let's say you made $100,000 in profit that year. Would you deduct $27,820 from $100k and be taxed as if you earned $72,180 that year? Or would you deduct the $27820 from your entire tax bill? (I assume it's the former, because the latter sounds too good to be true.)