Let’s be frank: tracking business mileage can be a pain in the drive train. Is it worth it?
You’d get a $5,400 tax deduction in 2016 for driving 10,000 miles for business, That’s a rate of 54 cents a mile. Nice. When you consider that it will save you not only federal income tax, but Social Security, Medicare and state income taxes as well, a $5,400 deduction could easily be worth more than $2,375 in tax savings! (FYI, the 2017 rate is 53.5 cents.)
The IRS recognizes some abuses surrounding the deduction, which is why it is one of the most closely scrutinized. If you’re audited by the IRS and lack adequate records, the IRS will likely deny your entire deduction, and may charge interest and penalties -- as much as 20% -- as well.
If only record keeping were easier… Enter MileIQ, a nifty app that “remembers your drives so you don’t have to.” It captures each drive automatically, and provides one-swipe classification as business or personal. And we can’t forget our two favorite features -- minimal battery use and automatic calculation of the tax value of your drive!
And when it’s tax time, your drive history is stored securely in the Cloud, making it easy to send to Hoppe Tax so we can maximize your deductions! Use promo code SHOP940A for a nice 20% discount off your purchase.