Most people do not keep adequate business mileage logs, although it is a requirement by the IRS and for reimbursement for company expenses. What then do they do? At the appointed time to turn in tax information to the CPA, or the company, numbers are hastily calculated. The hope is that the IRS will not audit and thus find the lack of records, or the company does not ask for receipts or a mileage logbook before reimbursement. This is a dangerous situation to be in year after year.
Mileage Logs are Money in the Bank
The business mileage deduction for 2011 is 51 cents per mile for business related driving, as noted in a news announcement from the IRS. In 2010, the rate was 50 cents per mile, while 2009 was 55 cents per mile. Business vehicles driven for 15,000 to 20,000 miles per year, at 51 cents a mile would be $10,200 in business deductions or reimbursements from your company. That is a lot of money! Different amounts apply to charitable miles and medical miles driven.
GPS for Mileage Log Records
GARMIN has introduced Autolog LITE. GARMIN developed Autolog LITE for GARMIN users to maintain business miles reimbursed by their employer or through a yearly tax deduction. The recorded logs from the GARMIN unit produce an overview of driven routes. The trips can be selected into categories of business miles, charitable miles, medical miles, or personal mileage. The selected routes show mileage, destinations, and automatic calculated reimbursements. An upgraded version of the program tracks the time spent at each destination.
The report is available in PDF format or formulated into Excel spreadsheets. A license is one-year for $109.99, two years for $199.00, and a three-year license for $279.99, sold with a free 14-day trial.
Making Mileage Logs Pay
At a savings of $10,000, the $110.00 a year service contract is an inexpensive way to remain compliant with the IRS requirements and save time. Calculating charitable miles driven, or medical miles driven just adds to the savings.
Logbook sheets are available by free download as Excel spreadsheets, but entries must be recorded on the sheets. When the vehicle has the mileage for business and personal travel, record keeping becomes even more complicated. With the Autolog LITE report, destinations for business, charitable, non-profit, or personal travel can be selected and a report issued for each expense.
Relieving the burden of daily mileage log record keeping is almost worth any expense. Having maintained business mileage logs for 35 years in the past, this service would have been extremely helpful in recording trips to client's offices and job sites, had it been available then.
Sources:
Beverly Bright - Beverly worked in industrial/commercial Architectural Drafting and Design for 35 years and owned and managed her own business for 17 of ...
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