For more information on recording mileage for business purposes check out our blog post: Tax Deductible Expenses for Landlords.
- Recording Mileage in the App
- Recording Mileage on our Desktop Software
- Running a Mileage Report
- Calculating your Mileage Expenses for the Year
Recording Mileage in the App
Step 1. Select the property or organization related to the expense.
For example, you are driving to your rental property to do a property inspection. Select that property using the left hand menu bar.
Step 2. Tap on the Other tab at the top of the property page.
Step 3. Tap on the "Add Mileage" card below the "Add Notes' option.
Step 4: Enter the date of the travel, the total miles travelled, and the start and end addresses for your journey.
Step 4. Add in extra details.
If you are audited the IRS may look for additional details such as the purpose of the journey and any additional expenses you’ve included in the travel expense.
Step 5: Save.
Recording Mileage on our Desktop Software
Step 1. Navigate to the Relevant property via the left-hand menu bar.
Step 2. Scroll down to the bottom of the property dashboard
Step 3. Click on "Add New Mileage".
Step 4. Enter the date of the travel, the total miles traveled, and the start and end addresses for your journey.
Run a mileage report
You can run our mileage report in the app to instantly generate a report showing all your mileage expenses broken down to make it easier than ever to maximize potential travel deductibles.
To run a mileage report tap on the reports option on the bottom menu bar. Then select Mileage report from the Reports dropdown.
Calculating your mileage expenses for the year
There are two methods for deducting mileage expenses in the US. You can either work out the exact method. This requires you to calculate the exact amount spent on travel for business purposes over the course of the year.
This includes all associated travel expenses such as parking fees, tolls, interest on a vehicle loan, vehicle registration fees, maintenance, and repair costs, and of course the total amount spent on gas.
You will need to keep careful records of each and every expense if you choose the above method.
Alternatively, you can use the standard mileage rate deduction method. For 2020 this method allows you to deduct 57.5 cents per mile driven for business miles driven. For this, you will want to keep a mileage diary that records the exact amount of distance traveled, when, and for what purpose.
Taxpayers can also deduct parking fees and tolls in addition to the standard mileage rate, but no other actual expenses if they use this rate. This changes every year so please check official sources for up to date rates.
Whichever method you choose, it’s imperative you keep a detailed mileage log. If you choose the former method you can record these expenses in the app under the organization expense section. It’s important to note that not all of your vehicle expenses may be deductible.
Tags: Driving mileage, mileage tracker, tracking mileage, record mileage, mileage recorder, work vehicle, vehicle expenses.