Tax Tip
Buisness MileageThis week's tax tip of the week is for small business owners and independent contractors. Go to your office supply store and purchase a Business Mileage Booklet available for under $5 (a tax deductible expense). The key is everytime you get into the car to make sure your trip odometer is zero. Then the trip odometer will tell you exactly how far you traveled each day.
All you have to do is open up your mileage log and write down the date, why you traveled, who you met with, and of course the mileage traveled to and from your destination. All business mileage must be business related. You don't get to write off commuting miles.
I find clients who estimate their business mileage severly underestimate the business mileage they actually drive. If you are underestimating your mileage, you are paying the government instead of keeping the money for yourself.
Keep accurate records and you will pay less out in taxes each year. By increasing your deductions on several things you will notice this at tax time.
This tip is a starting point for limiting your taxes. All the information is not included here due to space limitations. Always consult a professional before using a tax tip. These tips should be used to ask your CPA or investment advisor about.
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If you prepare your own tax return, take a look at these 10 tips to help you. Look at our
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Last modified:
April 15, 2003