Logging Mileage
You know, my mom told me this... lol
She knows that I go out wheeling and dealing sometimes looking for properties and told me I should log my mileage and that I could write it off for taxes.
Does anyone do this? Or does anyone know what the amount per mile would be?
A good idea, I just want to know if it will be worth the effort.
JB
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It is worth it.
Just keep a notepad in your car.
Start / finish - Location - Purpose
Total it weekly or monthly to keep on top of it.
I forget rate...but you can use your vehicle "per mile" or "actual costs". For me mileage usually works best.
One question on the tax returns is "Do you have written records?' Good to say "Yes".
**Your Mom is R I G H T." lol
I'm not sure if the IRS has published a rate to use for 2004 taxes yet but I'm assuming it would be a little up because of gas prices. It was 36.5c per mile last year if I remember correctly.
The IRS has been clear that it expects you to keep a mileage log so yes it is a good idea.
Do I do this...no...I wish there was an easier way!
I don't find the effort worth the tax savings.
Let's say I keep meticulous records and log 1000 miles during the year in real estate activities related to my rental properties. At 36.5 cents per mile, this gives me a $365 expense item. In the 15% tax bracket, the tax benefit to me is only $55 per year, $37 in the 10% tax bracket.
This amount is not large enough for me to get excited enough to keep the logs that document the mileage.
I'm thinking it's 37.5 cents for 2004.
I'm thinking it's 37.5 cents for 2004.
Well for 37 or 38 cents a mile, I think I'll take the tax cut, lol.
Thats an extra couple hundered bucks in my pocket and I can put it to better use than the IRS can I'm pretty sure.
JB
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