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Keeping log of miles traveled?

Discussion in 'Starting a Lawn Care Business' started by Lawnboy85, Feb 16, 2007.

  1. Lawnboy85

    Lawnboy85 LawnSite Member
    from South
    Messages: 62

    For federal income tax purposes, what are the rules for keeping a log of my miles traveled while going from site to site to service a yard so that it may be deducted as an expense? Is this even necessary? Any information on this subject would be greatly appreciated.

    Blake Lohse
    Lohse's Lawn Service
  2. lawn guy1350

    lawn guy1350 LawnSite Member
    Messages: 214

    yes, if you write it off and you get audited, they will want that info. write it down from the second you leave the driveway to start working, then when you get home from when your done working.
  3. Grits

    Grits LawnSite Silver Member
    from Florida
    Messages: 2,994

    This is exactly what I do (or try to remember to do) every day. I keep a ledger book in my truck. I have a column for the date, column for start, start and trip.
  4. TurfDesign Eric

    TurfDesign Eric LawnSite Member
    Messages: 19

    I made a weekly log sheet. It tracks fuel expence & mileage daily & weekly
  5. ECS

    ECS LawnSite Bronze Member
    Messages: 1,733

    Same here. Tracks all miles for work and personal, fuel dollars & fuel gallons, miles per gallon, daily, weekly, monthly, YTD, and any repairs/maint on vehicles.
  6. echeandia

    echeandia LawnSite Bronze Member
    Messages: 1,131

    If your business owns the vehicle all you need to do is track gasoline, insurance, maintenance, and any property tax expenditures. Mileage deductions are for business use of a personal vehicle.
  7. sildoc

    sildoc LawnSite Silver Member
    Messages: 2,925

    You get milage deductions on your business vehicle also. It is easier if it is business only as you take the milage on Jan 1 and then again on Dec 31.
  8. echeandia

    echeandia LawnSite Bronze Member
    Messages: 1,131

    You can't double deduct. If your company owns the vehicle outright (no loan payment which would be another expense) then you get to deduct depreciation, all maintenance expenses, gasoline, insurance, and property tax on the vehicle. The mileage allowance is a way of calculating all these costs to run a vehicle on a per mile basis. If you take both the itemized expenses and the mileage allowance you are taking the same deduction twice. Good luck with the IRS.
  9. wnccutter

    wnccutter LawnSite Member
    Messages: 122

    ...you could be right...if it is a 100% business the odometer reading is of no use if you are depreciating the vehicle instead of using the mileage method...there are two methods used for applying the cost of your vehicle and almost exclusively, a business will depreciate the vehicle and then just record expenses like fuel, tax, repairs and etc...

    But, if you use a business vehicle for any personnal use you have to record how much of it was used for business and how much of it was for personal...this is why owning a second vehicle is nice...that way you can click the box that says that you have another vehicle available for use...thereby justifying 100% deduction...in 100% business use the mileage is recorded in some tax software as a technicality just so the software will compute 100% deductibility...
  10. echeandia

    echeandia LawnSite Bronze Member
    Messages: 1,131

    If a business vehicle is used for non-business purposes just forget about it. It is when a personal vehicle is used for business purposes that you keep track of the business use mileage.

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