AMD Snacks Posted January 22, 2017 Share Posted January 22, 2017 Anybody know which miles count to the IRS? Is it just running the route? Is it getting to and from your first and last stops respectively? Link to comment Share on other sites More sharing options...
TexasFreemason Posted January 22, 2017 Share Posted January 22, 2017 Any miles that are business related count. This includes running the route, including the distance to the first and from the last stop, going to Sam's to buy product, picking up equipment, and looking for locations. Link to comment Share on other sites More sharing options...
zjtaylor Posted January 23, 2017 Share Posted January 23, 2017 Do you just write it in? Any fuel receipts necessary? Link to comment Share on other sites More sharing options...
lionvending Posted January 23, 2017 Share Posted January 23, 2017 Just keep track of the mileage. Thats all my accountant requires. Fuel is operating costs. Mileage write offs are separate. Link to comment Share on other sites More sharing options...
vendtex Posted January 23, 2017 Share Posted January 23, 2017 I'm pretty sure that you can either deduct mileage or actual fuel costs but not both because the mileage rate covers gas. If you have a gas guzzler that takes a lot of maintenance then it might be better to deduct actual expenses. Link to comment Share on other sites More sharing options...
Zigzag Vending Posted January 25, 2017 Share Posted January 25, 2017 Deducting actual expenses includes all necessary expenditures related to the vehicle, including but not limited to: fuel cost, oil changes, insurance, tags, maintenance, car washes, tires, payments, etc. I have an older, paid off, 28 mph Corolla wagon, and i easily get more back by counting mileage, plus its easier. When i run my route, i write the mileage leaving my driveway and then entering my driveway afterwards, on a table-style worksheet i keep in a folder in the car. I have an area where i can make a brief note about where the route was. That being said, if i were to buy a new truck (payments new) i would keep track of both. You have to use a percentage to deduct actual. Like, my odometer shows 30,000 for the yearand my worksheet says 15,000 of them are business on the year, i deduct 50% of all expenses. So u have to track mileage either way. Link to comment Share on other sites More sharing options...
F J Vending Posted February 1, 2017 Share Posted February 1, 2017 On 1/22/2017 at 0:32 AM, TexasFreemason said: Any miles that are business related count. ...... and looking for locations. I look for a lot of locations. Link to comment Share on other sites More sharing options...
AMD Snacks Posted February 1, 2017 Author Share Posted February 1, 2017 I tried looking on the irs website to back that up. It's sort of a rats nest of rules and regulations. Do you guys do your own taxes or have an accountant do them? Because I was getting the vibe from my accountant that he only counts some of the miles, but then again, i'm not sure he's used to dealing with a business like this. ... Link to comment Share on other sites More sharing options...
F J Vending Posted February 1, 2017 Share Posted February 1, 2017 39 minutes ago, AMD Snacks said: I tried looking on the irs website to back that up. It's sort of a rats nest of rules and regulations. Do you guys do your own taxes or have an accountant do them? Because I was getting the vibe from my accountant that he only counts some of the miles, but then again, i'm not sure he's used to dealing with a business like this. ... What do you mean "he only counts some of the miles". Don't you just tell your accountant "I put xxxxx miles on my vehicle for business purposes"? What activity is he not counting the miles for? Link to comment Share on other sites More sharing options...
AMD Snacks Posted February 1, 2017 Author Share Posted February 1, 2017 Oh I don't know. Is that how it works? The whole taxes and deductions thing seems like a bunch of rhetoric lol. Seems like if you're small enough, and not greedy, you can pretty much tell the IRS whatever you want and probably never hear about it. I just wasn't sure if this was one of those gray areas, or if it's a guaranteed and written down kind of thing. I vaguely remembering this guy trying to say some mileage (either to or from your route) doesn't count. This is my first time writing off my miles, and my first time using this guy, still haven't figured out if he's any good yet, he was referred to me by someone. Link to comment Share on other sites More sharing options...
AZVendor Posted February 2, 2017 Share Posted February 2, 2017 For each vehicle you use you must choose only one way to track expenses, either the allowable IRS mileage rate OR the actual expenses. You must pick one after the first year of use and then stay with it until you dispose of the vehicle. You can't go back and forth or even change it one time. Link to comment Share on other sites More sharing options...
musser Posted February 2, 2017 Share Posted February 2, 2017 29 minutes ago, AZVendor said: For each vehicle you use you must choose only one way to track expenses, either the allowable IRS mileage rate OR the actual expenses. You must pick one after the first year of use and then stay with it until you dispose of the vehicle. You can't go back and forth or even change it one time. That is correct! Each and every mile driven for business is deductible. Unless you are driving a 1976 Dodge with a 440 sixpack the standard mileage deduction s the way to go. By the way if the grocery store or gas station you shop at "just happen to be" on your route the miles are still deductible. I never had any trouble with the IRS through several audits (they are suspicious of cash businesses) but I always have a "drivers log" in all my vans. In a dedicated vehicle you just have to keep track of raw miles for all trips, But for a vehicle used for business/personal just write down beginning and ending mileage of each business use. I used to "pay" for my personal cars easily from my tax savings. Link to comment Share on other sites More sharing options...
Zigzag Vending Posted February 2, 2017 Share Posted February 2, 2017 I would deduct actual expenses if i ever bought a brand new vehicle, truck or big van especially, since i live in an area where tags and taxes are killer (try $3000 for a year-old kia optima). Then even car washes are deductible. U cant go to mileage latee, but if u trade in every 5 years or less it may be worth it. Thing is, you have to track your mileage anyway if it is a business/personal vehicle to get a % for business use to multiply against expenses, so if you keep all your receipts and track all your miles, your accountant or tax preparer can tell you which will work out better for you. Link to comment Share on other sites More sharing options...
Zigzag Vending Posted February 2, 2017 Share Posted February 2, 2017 2 hours ago, AMD Snacks said: I vaguely remembering this guy trying to say some mileage (either to or from your route) doesn't count. Hes wrong. Hes misunderstanding the definition of "commute" miles. Thats miles from your home to your office. Since your home IS probably your office, you are on the job as soon as u leave ur house for your first loc. And you still have to return your business vehicle to your office, which is deductible. You need a new guy. Link to comment Share on other sites More sharing options...
musser Posted February 3, 2017 Share Posted February 3, 2017 A second thought: mileage vs actual expenses would depend on your driving area. I have really long routes where the miles rack up quickly but if you are in a very urban area actual expense may be the way to since you have so much idle time and few driven miles. The only way to get the most benefit from the tax laws would be to track your actual expenses and then compare that to the standard mileage deduction at the end of the year. and yes, you may need a new taxman Link to comment Share on other sites More sharing options...
AMD Snacks Posted February 3, 2017 Author Share Posted February 3, 2017 A second thought: mileage vs actual expenses would depend on your driving area. I have really long routes where the miles rack up quickly but if you are in a very urban area actual expense may be the way to since you have so much idle time and few driven miles. The only way to get the most benefit from the tax laws would be to track your actual expenses and then compare that to the standard mileage deduction at the end of the year. and yes, you may need a new taxmanGood to know, hopefully things will go well when we meet up this Friday, if not Yea I'll find a better guy. Sent from my SAMSUNG-SM-G920A using Tapatalk Link to comment Share on other sites More sharing options...
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