All Star Vending Posted May 9, 2013 Share Posted May 9, 2013 I am in my 4th month in the vending business. I bought an existing route and so far things have been wonderful. One thing that concerns me is making sure that I have everything in order for next tax season. I am trying my best to keep track of all my expenses. I use the Taxbot program and APP to keep track of my mileage and expenses. This has been a blessing although I have only been using it since the start of April. I am still working to input my data from February and March. I definitely do not want to fall behind on the paperwork end of things. I am curious as to what other methods people use to keep track of the mileage and expenses. Does anyone else use Taxbot or similar program?. I cannot imagine running a descent sized route without the use of such programs. Also, I use the Standard Mileage Deduction ($.565/mile). Does this include the purchase of gas or can that be written off as well? Thanks. Link to comment Share on other sites More sharing options...
Toad Posted May 9, 2013 Share Posted May 9, 2013 The deduction covers both your gas and car usage Link to comment Share on other sites More sharing options...
SeaTurtle Vending Posted May 10, 2013 Share Posted May 10, 2013 if you are taking the.565, then that is all you get. I track my mileage, save all receipts and claim the percentage use. Link to comment Share on other sites More sharing options...
All Star Vending Posted May 10, 2013 Author Share Posted May 10, 2013 Thanks SeaTurtle. I did some more research on this topic. Not quite sure how you calculate your mileage. Do you use the .565 or add up expenses? Link to comment Share on other sites More sharing options...
SeaTurtle Vending Posted May 10, 2013 Share Posted May 10, 2013 I keep a log book for millage. you start with the vehicles miles on Jan 1 and track down any business trips throughout the year. then joy down the miles on Dec 31. divide your business miles by the total miles driven and you have your percentage of business use for the vehicle. Now ALL vehicle expenses are multiplied by this percent and are considered business expenses. This includes insurance, gas, repairs, etc... Link to comment Share on other sites More sharing options...
will.vend Posted May 10, 2013 Share Posted May 10, 2013 If you claim miles you cannot deduct gas oil tires repairs etc...you can deduct insurance though. Now if you have major repairs and it adds up to more than miles you would go that way. Link to comment Share on other sites More sharing options...
Toad Posted May 10, 2013 Share Posted May 10, 2013 "If you claim miles you cannot deduct gas oil tires repairs etc...you can deduct insurance though." You might wanna double check that Will to be sure. Link to comment Share on other sites More sharing options...
SeaTurtle Vending Posted May 10, 2013 Share Posted May 10, 2013 I don't claim miles. However, you need to track them so you can get percentage use to claim the repairs, gas, etc. I run an S corp which also allows you to claim all medical expenses for the family Link to comment Share on other sites More sharing options...
AZVendor Posted May 10, 2013 Share Posted May 10, 2013 I believe that whichever way you elect to start deducting your vehicle expenses is the way you must always do it until you dispose of the vehicle. Link to comment Share on other sites More sharing options...
sherlock Posted May 10, 2013 Share Posted May 10, 2013 If you claim miles you cannot deduct gas oil tires repairs etc...you can deduct insurance though. Now if you have major repairs and it adds up to more than miles you would go that way. I don't know that you can deduct for auto insurance in those circumstances. Link to comment Share on other sites More sharing options...
will.vend Posted May 10, 2013 Share Posted May 10, 2013 I don't know that you can deduct for auto insurance in those circumstances. yes you are right, sorry I was thinking about business liability insurance. Link to comment Share on other sites More sharing options...
SeaTurtle Vending Posted May 10, 2013 Share Posted May 10, 2013 Keep in mind I am an S corp. Each set up has different tax scenarios. I picked S corp for the tax benefits. In my case, if you do percentage of miles driven, all vehicle expenses are counted via the percentage of use. If I chose to do the.56 return per mile, then there no vehicle expenses can be deducted. Once you use a method on a vehicle, you must use that method for the vehicles life. I hope that made sense. Link to comment Share on other sites More sharing options...
All Star Vending Posted May 10, 2013 Author Share Posted May 10, 2013 Thanks for the info everyone. I am going to just keep track of everything and run it by my accountant. She can help me sort things out. I just don't want to get further down the line and realize I should have been tracking a certain expense. Link to comment Share on other sites More sharing options...
sherlock Posted May 10, 2013 Share Posted May 10, 2013 Thanks for the info everyone. I am going to just keep track of everything and run it by my accountant. She can help me sort things out. I just don't want to get further down the line and realize I should have been tracking a certain expense. BINGO! That's the right thing to do. Link to comment Share on other sites More sharing options...
massalonvending Posted May 25, 2013 Share Posted May 25, 2013 Taxes. I personally have an accountant that charges $125 for filing and finding ways to let me pay less taxes. I have gotten a refund every year, and turns out you can write off a lot, especially if you are very small business. For example, you could write off a wallet as an "office supply", if you are holding business cards in it. If you go to a client's restaurant, it is possible to write that off as an expense, as you are theoretically checking your machine. Also, if you go to any restaurant and leave a business card or talk to the manager about placing a machine (if you are this ambitious), you can easily write off the visit to the restaurant, or store if it is a reasonably small purchase. You are the owner and you know how much your business can afford. Cheers! Also, this is all possible with an LLC Link to comment Share on other sites More sharing options...
mission vending Posted May 25, 2013 Share Posted May 25, 2013 I keep a log book for millage. you start with the vehicles miles on Jan 1 and track down any business trips throughout the year. then joy down the miles on Dec 31. divide your business miles by the total miles driven and you have your percentage of business use for the vehicle. Now ALL vehicle expenses are multiplied by this percent and are considered business expenses. This includes insurance, gas, repairs, etc... As far as I know the only vehicle expense that does not fall into the standard mileage rate is the capital cost and depreciation of the vehicle. Link to comment Share on other sites More sharing options...
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