December 18, 2020

IRS Mileage Rate 2020

IRS Mileage Rate 2020 hey, everybody, Kyle Sasser here with biztweaks. BizTweaks is your business toolbox. And they have a great tool for people. Probably a, lot of you already know about thistool. If you're in the self-employed or if you usesome online accounting software, it's highly likely you already know about this tool. I have tried a few different tools in thisarena. And.

All of them are problematic in some formor another. And I finally found one that.

Is netting mea lot more money than I was making in the past. So, what are we talking about? Today I'm, talking about mileage trackers. So for those of you that don't know, if youtravel. For business purposes, you are able to take those miles that you put on your caras, a tax deduction. I believe the current rates here in 2019 is58 cents a mile. Again, I'm not a. Tax lawyer or accountant,so please don't quote me on that. Please check and make sure that that is correctbefore filing your taxes with that information. But basically, for every.

Mile you drive forbusiness purposes, you get a 58% deduction for your taxes. Now, there are some rules on this deduction. Commuting to your office is not. Deductible,which honestly kind of sucks. Especially if, you have a longer commute likeI do, you're not allowed to deduct that, mileage off of your taxes. But for anything else that you do for businesspurposes, you are able to deduct that mileage. So if. You are driving to a restaurant fora business meeting, you can deduct the mileage. If you are– let's say today, I just finished a 30 mile drive for a, listing appointment;I get to deduct that mileage. If you are driving to the bank, you get todeduct that mileage. If you're driving to pick up some stuff fromstaples. Or Office Depot, guess what, you get to deduct that mileage. And it really adds up; 50 cents a mile., So in one month, I've driven, over 250 miles. That is, you know, like 100– What is that? $135 deduction? Yeah, that. Like, that's just money back inmy pocket that's not going for taxes. Like who wouldn't love that? Now, the annoying thing about mileage is youhave to track it.

And report it. Back in the day, you know, you'd keep a logbook of the mileage so you have to check.

The odometer, right the mileage down you know,write the purpose down and you had to do that every trip. If you drive a company vehicle obviously,much, easier, because you can just write the total mileage because everything forward isbusiness purposes,, you know, if you drive to the office and then pick up the businessvehicle there. If you're like me and.

Drive a personal vehicle,you know, you can't do that, you have to track the individual mileage. And let's be, real, I'm not going to keep notes- a notebook of my mileage log. I just– that's not the way my mind works. So, so of course, I turned to. Mobile apps,and there's a few out there that I have tried. Expensify was probably the best. That I founduntil the last couple weeks. And with this Expensify, it doesn't do justmileage, it. Does, you know, receipts and stuff like that as well. But. I've stopped using Expensify. And the reason why is because with the Expensify,you had to remember to start and stop the mileage whenever you want the track. And– Which sounds like, you shouldn't be able to do because it,there was a few, ways to track it in Expensify and you can take pictures of your mileageand manually enter it, which is basically like a. Log book. You could do after the fact calculations andenter it manually. Or you, could turn on the GPS on your mobilecell phone and just use the GPS to track it. Had a couple hiccups with the Expensify though,in that you have to remember to turn it on and turn it off, which. Gets annoying. And I even tried like automated, you know,like with your cell phone, you. Can say like, “Hey, send me a reminder whenever I get inthe car,” and it will– Like your iPhone or Android.

Will remind you every time you getthe car, “Hey, start, your GPS if you need.” But it still leaves a lot of room for mistakes. The other issue was a lot of times the appwill get confused and it. Would just skip mileage or just have huge gaps between it. And it seemed to be with like if I was usinga. Navigation app in addition or something like that. So, it wasn't the best.

Solution. So I don't recommend Expensify anymore. What I do recommend is QuickBooks Self-Employed. Now there is a charge for it, it's $9 a, month,but just from not having to manually remember to have to start and stop the GPS, it's alreadypaid for itself. In the first month. Just in two trips, it's paid for itself. So the nice thing about Google Self Employedis that it monitors your, GPS location in, the background, which means that you don't haveto remember to manually start and stop it. And then after the fact, you know, once aday– every day or, two you go through and you review the trips that it has recorded. And then you can classify it either as personalor as business, and, then with business you can even set subcategories. So, I have.

You know a category for real estate I havea category for, you know, Great Things Tampa Bay, which is another, show I do, or it hasa category for this week's which is you know, what you're watching now. And just the fact that it, monitors all thestuff in the background and then automatically calculates everything, means that you do notmiss anything. So I can't recommend it enough..

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