WAHM Forums

I am doing the pre work for my taxes. How do you do your mileage? I have all my receipts and was going to mapquest all of them to have proof of my mileage. Is this acceptable in the eyes of the IRS? Also, who does your taxes? This is my first year and I would like to go to a pro and have them done rather than me struggle through on my own. TIA!!

Hi Ann Marie,


The best way, and the acceptable way to the IRS, is to keep a daily log/record of your business miles. You can go to any home office store and they have them there.


I have an accountant do my taxes, just for the pure convenience of it all. However, you will still have to get all of your information together for him/her, so there is still a lot of work to be done.


Good luck!

Yes Ann Marie,


If you are tracking mileage, covert your reciepts into actual milege to and from your destination and you get the write off of 0.48 cents per mile. You can track depreciation of your vehicle instead and then you would keep reciepts for gas, maintenance etc, but I think you earn more by doing mileage... and its probably easier to keep a notebook in your car and jot down your beginning and ending milage each trip.


Ask your Accountant which is better for your biz.


Chris

I found an article in Country Woman (Jan/Feb 2006) entitled 2005 Tax Update and the mileage rates are as follows:

"One rate, 40.5 cents, is used for the period of Jan 1 through Aug 31,
2005, and the second rate, 48.5 cents, should be used for Sep 1 through
Dec 31, 2005."



The mileage rate went up mid-year because of the gas prices, but it was lower at the beginning.



There is also mention of taxpayers being able to choose to deduct
either state income taxes or sales taxes on their 2005 returns. I
am still trying to figure that out in my head. Anyone have any
insight?

I don't have to travk or pay state Sales Taxes as it is paid for me right now, so my Acc't deducts the State Income Tax for me. That's all I know about that!


Chris

Taxpayers if they itemize may either deduct state income tax or sales tax paid....which ever is higher (hopefully). Some states don't have a state income tax so this will help them. This will be the second and last year (unless extended) that sales tax will be deductible. You can either use the table the IRS provides to give you astandard sales tax deduction by state or if you have kept your receipts you can use actual. Also, if you do decide to use the tables the IRS provides you can ADD to that amount the sales tax you paid on a motor vehicle, home, boat, or airplane. And (this does end, I promise) you can NOT deduct sales tax on items used in your business.


If you have the addresses where you went on business and the details (like if you stopped at the grocery store on the way, etc...) your tax professionalwill be ableto help you create mileage records. I know this for a fact because sometimes people have to have their records created years after the fact during an audit.


I have an article somewhere on how to choose a tax pro (no I did not write it).


Good Luck


Venessa L