Friends, I’m sorry to report that with the New Year, not only come the resolutions and the new goals, but also comes the time to begin preparing your tax return. For the real estate agent, this is not always an easy task—unless you have a really good system in place. Since most real estate pros are independent contractors whose earnings are reported on a 1099-MISC, we have the benefit and the curse of itemizing tax deductions. One such deduction is the mileage deduction for business.
Install a Mileage Tracker App - See MileIQ
Dedicated real estate pros are raving about the way in which MileIQ helps to keep track of the mileage for tax purposes. It’s a super app and it is available for both iOS and Android devices. Basically, you install the app on your smartphone and it does all the work! It automatically tracks and records all of your car trips. Then, you go back into the app and tag which trips were for business purposes. It does the math; you take the tax deduction. That’s all there is to it! According to an IRS Announcement from December of 2015, the standard mileage rates for the use of a car, van, pickup or panel truck for 2016 were:
- 54 cents per mile for business miles driven, down from 57.5 cents for 2015
- 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
- 14 cents per mile driven in service of charitable organizations
With the mileage rate of 54 cents per mile and with most real estate agents practically living in their cars, just imagine how much money you will find in 2017 if you only installed MileIQ right now to use for next year's tax preparation?
How Much Does MileIQ Cost?
Well, for the unlimited version, it is $59.99 per year. But, you can try it out absolutely free by signing up for the Limited Plan (40 drives per month). I’d say that since the Limited Plan is free, it would definitely be worth a try. Just one final thought: (check with your tax advisor on this) It’s possible that the $59.99 annual cost of MileIQ is deductible as well, since the use of it is necessary to your business!