The Most common question is always regarding your AUTO EXPENSES! So here’s what information I need: Auto Info : Type, Year & Model of Vehicle(s) and original Start Date for Each job. Three Totals for mileage is BEST: Annual total, Business miles, Commute miles – this is home to “office” only. If you have Many jobs or drive to different locations please talk to me about this! Some can be Business miles and others commuting.
Business miles are also all the errands, misc. trips and those commutes you do for work (multi work locations) but not the round trip from home to shop/office; UNLESS you have your office in your home – then all your biz miles are reportable but must be logged in on paper – a calendar works fine. Biz Use of home office requires “exclusive and regular” use plus I’ll need the sq. ft of home and sq. ft of “office”.
This is really the best way to deduct your car expenses so you never keep gas, oil receipts and repair bills UNLESS you have a moderate total of miles and your car has a ton of repairs – but once we use this actual expenses method; we have to continue to use this method as long as you use this vehicle. We cannot switch back to the standard mileage system. The actual expense method also just uses the percentage of the expenses that is represented by the biz miles to the total miles, so that is why it’s VERY difficult to get a good number here- it’s a catch-22.
Be advised – Keep those mileage records!