Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-09-2014, 03:46 AM
Junior Member
 
Join Date: Feb 2014
Posts: 3
how to calculate mile on my car?

hi!

I own a small business and also offer services to my clients at their home, how should i write the miles i have driven from my work to the clients house?

i am new to this so i have no clue,
would really appreciate your help.

thank you.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-09-2014, 04:49 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by taxhelp12 View Post
hi!

I own a small business and also offer services to my clients at their home, how should i write the miles i have driven from my work to the clients house?

i am new to this so i have no clue,
would really appreciate your help.

thank you.
To deduct mileage, you must use the guide provided by the IRS. It is updated annually to reflect price changes. A self-employedr can claim a deduction for miles driven to a job assignment. The starting point must be your home, an office or a job location, and the destination must also be a home, an office or a job location. You cannot deduct miles driven for other reasons even if you drove the same vehicle. The IRS requires you to take relatively straight routes from one location to another. An auditor may not allow you to claim side trips between two points if they added to the total length of your reported deductible use. You can deduct mileage driven for non-work reasons related to the business. This includes driving to the bank to make a deposit and meeting with professionals managing your business.you have the option of deducting actual expenses. This option provides benefits if you spent more on traveling than the federal reimbursement rate provides. Actual vehicle expenses include the actual cost for fuel, maintenance costs, oil change costs, the cost of new tires, vehicle registration fees, vehicle loan interest, vehicle insurance, lease payments, vehicle depreciation and toll booth and parking fees. Vehicle loan interest, toll and parking fees and registration fees also can be deducted by those who opt for the standard mileage rate. When you use the actual expenses option, you also must calculate the percentage of business use of the vehicle. The vehicle is used 100 percent for business if you do not use it for personal reasons. Otherwise, you have to subtract a percentage of the expenses due to your personal use of the vehicle. To deduct mileage on your federal tax returns, you must keep records of your mileage. Your records must show the starting point, each stop on your trip and the total mileage. You also must include the time and the date of your trip and the business purpose. If you opt to deduct actual expenses, you must maintain records, including receipts and canceled checks, to document the expenses. You also must have records of the total miles that you drove for the year. Normally, you can record each use of your vehicle and total the mileage to meet this requirement.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 03-09-2014, 04:53 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Note;the standard mileage rate and the actual costs method cannot be used at the same time. The standard mileage rate already has vehicle depreciation built into it, meaning that one cannot claim additional depreciation when using this form of deduction. In addition, small businesses that decide to use the standard mileage rate for a vehicle must do so in the first year that the vehicle is placed into service. In later years, a business can switch to the actual cost method if they so desire. However, a straight line method of depreciation, which yields a smaller deduction, must be used in all subsequent years for vehicles that initially used the standard mileage rate.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 03-18-2014, 11:50 AM
Junior Member
 
Join Date: Feb 2014
Posts: 3
thanks for your help!

do I have to put how much the car cost even though I am haven't bought the car the years I am filing for

for eg: car bought in 2008
and filing for 12 and 13

do I still need to put car's vale

please reply.

thank you



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
How to Calculate the Tax Liability for a Portion of Income Blackeyes24 For 2013 1 01-27-2014 05:52 AM
How to calculate Adjusted Gross Income? JerseyGuy Income 1 01-06-2010 02:26 PM
2009 Standard Mileage Rates For Business Mile Deduction Samatg Auto Expenses 0 01-12-2009 03:34 PM
How to calculate the NOL for the AMT purposes? cherywon Alternative Minimum Tax 0 04-03-2008 10:22 AM
how to calculate EPF ajit88nair Income 1 11-30-2007 03:57 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.