Keeping track of your mileage can help you with your taxes at the end of the year, not to mention it’s mandatory. Click here to learn how to fill out a logbook.
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Running a business is no small feat, and you probably need all of the help you can get. It takes a lot of research to keep track of everything involved with being self-employed.
The good news is that you have come to the right place with this article in researching how to fill out a logbook. (Even employees of a company, though, could benefit from reading this article.)
There are so many things you will need to know if you are self-employed. Take a look at some of that might help you with all the ins and outs of this new venture.
Then, read the rest of this article. It will outline everything you need to know about tracking your mileage so that you can get the highest tax deduction for business transportation.
The key here is to stay organized and detailed.
Requirements for the Internal Revenue Service (IRS)
The IRS will need a couple of things for you if you want your deduction to be successful. They will need more than just the number of miles driven to and from business engagements.
You will also have to remember to track the date, the time, and the purpose of each business trip you are attempting to claim.
The good news is that the standard mileage rate you can deduct has increased since 2017. This year the rate is 54.5 cents per mile, and last year it was 1 cent lower.
The IRS also specifies that only one vehicle per deduction will be allowed, and this is strictly monitored. The good news is that the IRS also allows for general maintenance for that one vehicle could also be deducted.
Self-Employed or Employee?
Once you start to research how to fill out a logbook, it’s important to remember that your employment status might affect your mileage and expenses claims.
So many people in the United States are starting to become self-employed in this gig-based economy. If you are one of them, you definitely need to start tracking your miles.
As mentioned above, you can’t track your mileage for everything, though. You can only fill out the logbook if you are traveling for business purposes. This will even need to be specified to the IRS once you turn in your logbook.
As a self-employed traveler, you have the permission to log every single one of the trips you take for business or professional intentions. If you are an employee of a company, you still may have some options.
You can claim mileage on a W-2 if the total deduction exceeds two percent of your total adjusted gross income. It might take some time to do the calculations for this, but it would be worth it in the long run.
Options for Tracking Business Transportation Expenses
There is some good news about getting the most out of your business-related travel expenses. You should be able to deduct many aspects of your vehicle’s maintenance.
Regular care for the care is usually deductible through the IRS. This could include a car wash, regular oil changes, reasonable replacement of tires, a new car battery, or even making sure all of the vehicle’s safety features are in working order.
These expenses are important to remember throughout the year, so make sure to keep your receipts of anything related to the upkeep of the vehicle you use for business transportation. Even if not everything is able to be accepted as a tax deduction, it would still be worth the effort just in case.
Trucker Logbook
If you are self-employed and using your personal vehicle for business purposes, your mileage will look different than that of a trucker’s logbook. The trucking industry has different demands and expectations when it comes to recording mileage.
Instead of determining if each specific trip in the vehicle is actually related to business, truckers should get into the habit of tracking every single trip they make in their truck. In fact, they should get in the habit of recording pretty much everything they can about each trip they make.
Truckers should log their mileage daily, and they might add a little bit more information than regular self-employed drivers. For example, you’ll want to record the name and address of the home office of the company for which you are driving.
Even though you will get into the habit of recording such things daily, take care to be detailed and write legibly.
Properly Invest in Your Vehicle
When it comes to transportation for your career, you might only be thinking about tracking mileage. There’s more, though, for you to consider for your vehicle.
Properly maintaining the vehicle you use for business transportation purposes is an investment. Consider taking extreme care of your vehicle.
While it wouldn’t be a reasonable deduction for business expenses, consider sprucing up your vehicle a little bit. You can get chrome-plated emblems, a new paint job, or even tint your windows to add a little bit of style to your business transportation.
The more you invest in your vehicle, even if it is just on an aesthetic level, the more you will want to use it properly in the long run.
How To Fill Out a Logbook
As mentioned above, there are certain things you are required to track for each mile you want to claim for a deduction. You will need to remember to track the date, time, and purpose of each business trip.
Filling a logbook should be a daily endeavor, and you should be as detailed as possible with this task. Organizational skills are crucial to make sure you don’t miss anything that could potentially add to your tax deduction.
Sometimes, though, it might be useful to have some help when filling these out. That’s why there are plenty of free logbooks available for your use. For example, check out the .
We know how important it is to take your business and its potential tax deductions seriously. We are here to help you make the most of your business profits.
We encourage you to check out the rest of our website for further advice and guidance on being self-employed and/or running a small business.
