The IRS Just Raised the Mileage Deduction - Your Mileage Log Is Even More Important!
The IRS just recently raised the to business mileage deduction to $0.58 per mile. This increase means you really need to keep the most accurate vehicle mileage log possible.
Your mileage log has just gotten that much more important for you if you are keeping track of your mileage for income tax purposes here in the United States.
That's because, as of July 1, 2008, the tax deduction for business mileage has been increased to $0.58 per mile. This increase means you really need to keep the most accurate vehicle mileage log possible for two reasons:
Since you're getting a larger tax deduction for business miles, it just makes sense to record 100% of your business mileage if possible. Forgetting even 100 miles could cause you to pay tax on an unnecessary amount of $58.00!
The other reason may not be quite as obvious but my accountant believes that with an increase like this, the IRS will be examining mileage deductions more carefully now. You'll want to maintain the most accurate records possible in the event that the IRS questions you about your deduction.
Most folks cringe when you even mention the term "mileage log" to them. If you have ever had to keep track of your vehicle's mileage, then you know how cumbersome a manual mileage log can be ...
First you have to find a slip of paper or grab your Daytimer and then record your car's beginning mileage and the date and purpose of your business trip. Then at the end of your trip you need to remember to record the ending mileage. Next you need to calculate the actual number of miles you drove.
Then you need to input your raw data into a spreadsheet and go through all that's involved with that.
It can (and does!) get to be a real horror story! Keeping track of a manual mileage log is definitely no fun at all. If you're someone who needs to track mileage, then you know exactly what I mean!
Thankfully, modern digital technology provides a simple solution to this chore in the form of a digital mileage logger. These relatively new products will automate the process of maintaining your mileage log and make it a snap to generate the documentation you need for IRS reporting or any other mileage log requirement.
And it's so easy to do. No more scrambling around for a piece of paper or your Daytimer to record your mileage. A digital mileage logger simply plugs into your car's cigarette lighter and then at the beginning of your trip it starts recording your mileage, using GPS (Global Positioning System) technology to calculate your vehicle's position and thereby its mileage.
At the end of your trip, the tool sends your final mileage to the website associated with it where you'll be able to login and add any details necessary or format and download your reports.
And the units are so small that it's easy to move them from vehicle to vehicle in case you use more than one for your business trips.
Article Tags: More Important
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
Don't lose money with a manually based mileage log ever again. Check It Out Today at http://Mileage-Log-Made-Easy.com to learn more about how the Mileage Logger, a great little digital mileage log, can save you both time and money.