Reminder for Agents: Install Your Mileage Tracker App Today

Real Estate Broker/Owner with Broadpoint Properties Cal BRE #01324959

tax deductions for real estateFriends, 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!

Comments (4)

Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

This is a great app, Melissa Zavala and for many of us, a must have to avoid the sad results from an I.R.S. audit.

Jan 19, 2017 08:28 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

I have heard of this app several times, I am still in the dark ages with my notebook recording trips.

Jan 19, 2017 08:32 AM
Mike Bjork
Evolve Bank & Trust - Redondo Beach, CA

Thanks, Melissa!  This is very useful information.  It becomes quite the chore when you're doing it manually.  It's nice to have it simplified!

Jan 19, 2017 09:32 AM
John Mosier
Realty ONE Group Mountain Desert - Prescott, AZ
Prescott's Patriot Agent 928 533-8142

Melissa Zavala 

I had the free version of MileIQ.  It wastes through the 40 drive limit quite quickly by breaking up trips into shorter drives.  This also increases the amount of effort in doing the tracking.

ps  I really enjoy the emails I get from you!

Aug 17, 2017 11:34 AM