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important tax Q's

Discussion in 'Business Operations' started by mikesjumpingin, Apr 18, 2003.

  1. Lombardi

    Lombardi LawnSite Senior Member
    Posts: 538

    You don't have to log your mileage every time you drive. Just record your mileage at the beginning of your fiscal year and again at the end of your fiscal year. And, as stated before, determine what percentage you used the vehicle for business and that will be your deduction. I keep all receipts for fuel and maintenance and total that at the end of the year. I then figure my mileage deduction and whatever is greater, that is what is deducted.
  2. bruces

    bruces LawnSite Senior Member
    Posts: 648

    Without logging the mileage, you have no basis to establish your percentage. How do you prove you used it at all for business?

    The IRS doesn't really buy "oh, I used it 75% for business" without some documentation.

    The rules require you to keep records, whether you are using mileage or actual expenses.
  3. bruces

    bruces LawnSite Senior Member
    Posts: 648

    Again, all this establishes is total mileage for the year. Without mileage logs, how do you prove business use?

    You can't really determine business percentage without mileage records.

    Also, there are limitations on going back and forth on mileage vs actual deductions, depending on how the vehicle has been depreciated. Other records than mileage logs can be used to establish business miles (work logs showing jobs done, etc.) but a mileage log is the best and most accepted method.
  4. scott's turf

    scott's turf LawnSite Senior Member
    from NH
    Posts: 949

    I have a dedicated truck for the business and I only put on about 10k miles per year so in my case the standard mileage deduction does not pay off. Just between fuel and insurance I have about $2500. And unfourtunally I usually have more that $1500 in repairs.
  5. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,840

    He's assuming you're using your truck strictly for business purposes like many of us do. If you also use your truck for personal use, than yes, you're obviously going to have to keep those annoying every-day mileage logs.
  6. mikesjumpingin

    mikesjumpingin LawnSite Member
    Posts: 101

    I have to find out if I can just multiply established routes by number of visits, or maybe just document my miles commuting to my job, times number of days worked, and just subtract that from my total miles for the year.

    I really don't use the truck for family stuff, mostly just commuting.

    Daily logging my miles reminds me too much of the people and paperwork I'm trying to get away from. I don't mind doing my own book keeping and taxes, but I just want to hop in the truck and go cut grass without filling out forms.

    Oh well, maybe I'll get used to it.

  7. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,033

    I'm full time solo with 2 trucks and only use them for work (we have 3 other vehicles). I write off 100% of the expenses on both trucks and save receipts for gas repairs, etc. Last year I spent almost $4,000 on repairs on the old one and only put 5,000 miles on it, (thus the new truck) so it was defintetly a better write off than the standard deduction. You do still need to report the total miles driven for the year though.

    As far as sales tax, I fill out a tax exempt form for items I re-sell and tax the customer. That's the way it's done in CT

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