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Just finished my mileage log for 2011 and looked up the amount I can write off for mileage (for using a personal vehicle in business). The IRS changed the amount you can write off mid year. Look it up on Google: Mileage deduction 2011.
51c per mile from Jan 1-June 30 and 55.5c for the rest of the year, so if you are doing yours, make sure you know the drill, before you do it and then have to go back and change it.
I keep exact records of every business stop as it is a better deduction this way, but a pain to keep it exact. If you just estimate it, they can bump you back in an audit, I hear.
-------------------- Preston McCall 112 Rim Road Santa Fe, New Mexico 87501 text: 5056607370 Posts: 1552 | From: Santa Fe, New Mexico | Registered: Nov 1998
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My tax firm sent me an email about this at the end of June to make sure I was prepared to have two separate mileage logs.
-------------------- Dana Blair Blair Signs Wooster, OH www.blairsigns.com
If sign makers go on strike, is there anything written on their picket signs? Posts: 835 | From: Wooster, OH, USA | Registered: Jul 1999
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Thanks for the info. I keep track of the exact milage every time I go out. Word of advice from the IRS---Write down the exact addresses of each stop and what you did(ex deliver sign, measure store window for lettering).
Diane
-------------------- Balch Signs 1045 Raymond Rd Malta, NY 12020 518 885-9899 signs@balchsigns.com http://www.balchsigns.com Posts: 1695 | From: MaltaNY | Registered: Jan 2000
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Will they bust you or not allow the mileage if you do not write down the exact address and what you did?
-------------------- Preston McCall 112 Rim Road Santa Fe, New Mexico 87501 text: 5056607370 Posts: 1552 | From: Santa Fe, New Mexico | Registered: Nov 1998
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I went through an audit a few years back and they will bust you for everything. My husband drag races and the IRS says that you can take deductions for the first 3 years and if there is not a profit then it is a hobby. They only let us take it one year. They said it showed too much of a loss and they said only one year. It all depends on who is doing your audit too. There are many things that are not written in the tax book that leaves it up to the auditor. That is our Government for you.
-------------------- Cynthia Pack 246 Diamondview Loop Galax, Va. 24333 Posts: 659 | From: Galax, Virginia USA | Registered: Mar 2001
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They take more and more and only change the rules to benefit themselves. Instead of keeping 2 journals why not just turn in one vehicle that 100% business....and cesides that how are they going to know if you stepped out one night and went to the supermarket?
-------------------- You ever notice how easily accessible people are when they are requiring your services but once they get invoice you can't reach them anymore
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You can use one vehicle as a business vehicle and probably not have to record all the stops. I think it has to be titled in the name of the company and appear as a regular company vehicle. If it is used as a "demo" to drive to and from home, then a W-9 probably has to be used to shows the driver received additional compensation for use of a company vehicle for personal reasons. Managers at car dealerships have to have a "special use" d-tag to use a demo as a personal vehicle and do have to pay taxes on the amount declared as additional compensation for use if it.
The bottom line is that the IRS ruling about using a personal vehicle in business and having to record all the stops really is fair and the tax deductions are generous, as long as you are not driving a super expensive vehicle or not driving it that much. I find it well worth the effort. I get about $8000 off of my gross income last year for doing it this way. Sure gas, insurance and wear and tear are not covered and I only get a credit on the income, not the actual tax, but it is better than nothing.
The best part is that I have a good record of where I have been that does help me out in remembering my billing and who I have seen.
-------------------- Preston McCall 112 Rim Road Santa Fe, New Mexico 87501 text: 5056607370 Posts: 1552 | From: Santa Fe, New Mexico | Registered: Nov 1998
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