Hello, I have a burning question that I hope is appropriate for this website. I am an independent contractor and am wondering about mileage write off for taxes as I tend to drive long distances sometimes to work. Also, is there a resource for knowing what I am eligible for writing off for taxes and what I am not?
Landon Powers: What is your industry. You can read the IRS ATG
Lana Flowers: Acronym Alert! ATG stands for Audit Techniques Guides. Make sure to explain acronyms, as many of our members arent familiar with accounting industry jargon.
Landon Powers: Ingrid Edstrom ok
Lincoln Holloway: Ingrid Edstrom THANK YOU! Some of us are challenged in that area
Lana Flowers: Very appropriate question! Is this for your tour/travel business? I would love to get some of the tax advisors in the room in on this one. Naomi Figueroa:, Myra Villella, Logan Green:, and others: any suggestions?I LOVE tracking my miles using Expensify. As an S-corp owner, it makes it easy for me and my partner to reimburse ourselves from the business for miles driven for business.
Logan Green: Aubrey, long time no see! 53.5 cents a mile is the standard mileage rate
Logan Green: Unless you have a customized vehicles 95% of the time standard is better then actual.
Logan Green: I would recommend opening a separate business account and everything and anything that you can possibly associate with business you write off. Mileage and Home Office deductions dont necessarily have to be reimbursed it is a adjustment your accountant can make for you at the end of the year. I believe when you setup a QuickBooks Online Account it will ask you what industry you are in and provide you with a suggested chart of accounts. If you have not already got hammered by SE tax be prepared; perhaps talk to a professional about the LLC being taxed as an S Corporation designation.
Lana Flowers: Hey Justin, I *think* Aubrey is a currently a sole-proprietor. Can the company still reimburse her, or does it just go on to her Schedule C as the mileage deduction?
Logan Green: As a schedule C the mileage would need to be reported Total vs business use, whether she is reimbursed or not. As an LLC/SCorp she can be reimbursed or a debit can be made to auto to record her business use of auto contribution.
Talia Richardson: Hi Justin! Long time to see you except on FB land! Thanks for all this help!
Naomi Figueroa: Talia Richardson: my suggestions as a solopreneur/Schedule C filer with a need to track mileage: #1) Know your IRS Mileage Rules: Irs.gov #2)Get an APP that does both your mileage and tracks your business income/exp for you (you do not need to be in QBO as a simple Schedule C independent contractor, you have another option called QBSelf-Employed) Selfemployed.intuit.com #3) Learn the App before you start playing: Youtube.com
Standard Mileage Rates at a Glance
River Simpson: Everlance is another great mileage tracking app… it allows you to separate work, personal, medical, etc
Talia Richardson: Thank you all for your expertise! I am a soloprenuer and a consultant (that is how I am an independent contractor). The mileage write off would be more for the consulting. I will review all this more in depth this week and get back with any clarifying questions. What a great resource this is, thank you!