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Gas reciepts or mileage expense???

Discussion in 'Business Operations' started by Dig Yard Dirt, Nov 20, 2004.

  1. Dig Yard Dirt

    Dig Yard Dirt LawnSite Member
    Messages: 66

    I primary use one truck for my personal and business use. When doing business is it better to keep gas reciepts for all the gas or just keep up with the mileage for every job.
    I currently keep up with the mileage for every job as an $.36 a mile expense instead of gas reciepts.

    What's the best method to use??
  2. mtdman

    mtdman LawnSite Gold Member
    Messages: 3,143

    How about both?

  3. CucamongaDan

    CucamongaDan LawnSite Member
    Messages: 5

    You need to figure which one's more, your actual expenses or using the mileage rate , and deduct whichever's more. For my old paid-off Toyota its not even close so I use the mileage rate. Also, you're limited to one vehicle on which you can use the mileage rate.
    Just be sure to try to maintain a written log of what miles are for business use and what for personal personal use. When I go to the gas station I first fill the gas cans that I use for the mower- & keep a log of that amount because its deductible as "Supplies" on your schedule c.
  4. Dig Yard Dirt

    Dig Yard Dirt LawnSite Member
    Messages: 66

    I keep just gas reciepts for my mowers, edgers etc. and my dump truck. If the dump truck starts it's all business. I don't keep mileage on it, should I?

    Keeping records, reciepts, bills, payments, etc. etc. etc. is an account job by itself, it sucks. I just want to get my hands dirty and work like a mule. :blob4:
  5. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    I keep both as well.
  6. Littleriver1

    Littleriver1 LawnSite Senior Member
    Messages: 811

    I keep reciepts but mower and truck separately so I know for sure how much I'm spending on each. It helps in figureing out cost per month,week,day,year. I could be wrong but I think if you start doing it one way then you have to keep doing the same. To those that are not keeping good record, you may want to reconsider. Doing books is a PITA but it's not bad if you keep up with it. Sorting reciepts for 1 week sucks, for a month it's hatefull, for a year it's sicking, for 7 years it may have you puting a gun to your head. Quick Books Pro take some of the sting out of it. By the way I can tell you how much I spend at any gas station, Gal./ dollars, on any day in 30 seconds. Not that you care or that it matters but when you manage a business you should manage it all and not have to waste time chasing it down.
  7. EliteImpressions

    EliteImpressions LawnSite Member
    from Jersey
    Messages: 215

    I could be wrong but I think its .375 a mile. Any way to save more money at tax time.
  8. CamLand

    CamLand LawnSite Bronze Member
    Messages: 1,299

    Keep them both,better to have enough info then not enough...
  9. kootoomootoo

    kootoomootoo LawnSite Platinum Member
    Messages: 4,369

    FYI..........Did you guys notice the IRS has changed the standard mile deduction to $0.40 because of the higher average gas costs.
  10. Dig Yard Dirt

    Dig Yard Dirt LawnSite Member
    Messages: 66

    Very good information, thanks, I'm definetly going to keep them seperate to manage expenses and cost per machine aspect.
    I'm glad to see the mileage at 0.40 :blob3:

    Thanks, guys

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