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This is a great tip from Bill. I did not know about the taxbot.com but it looks like a very valuable record keeping tool. Just wanted to re-blog to get the word out. The idea of having your oil changed at the beginning of each year is brilliant! Thanks for the info.
I think everyone in real estate knows they need to keep a mileage log. Rest assured that will be one of the first things an IRS agent asks for. So here are some tips to keep your blood pressure down.
First of all, we need to know your total miles driven for each year. That’s easy peesy! Just have your oil changed at the beginning of every year. The receipts will show the odometer reading for the beginning of each year.
Next we need to establish your business usage. That can be done in several short cut ways. One is to keep a daily log of your business mileage for three consecutive months. The flip side of that is to keep a daily log of your personal mileage for three consecutive months. Either one works.
The IRS will also allow you to keep the mileage log for the same week of each month. So you pick the week such as the second week of every month and have 12 weeks of logs.
The log you keep should have the beginning odometer and ending reading for each day. The net difference is your mileage for the day. Now you just need to tell the story of where you drove that day. These records must be done within one week of their occurrence.
There are many apps out that can help you as well. I use taxbot.com. It has a GPS tracking ability to record your mileage and each day goes to a spreadsheet.
There are exceptions that require you to keep a log 24/7, so should you have any questions just email me or call
Bill Zumwalt Helping REALTORS with Tax Solutions and Solving Tax Problems for REALTORS REALTOR Tax Preparation, REALTOR Tax Accountant, Tax Preparation Tulsa, OK The Tax Coach for REALTORS
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.