Keeping track of mileage helps you get all the reimbursements you're due and it is important because all business-related mileage is tax-deductible. QuickBooks can help you keep records of the miles you drive.
If you want to track mileage on the vehicles you use for your business, create entries for your vehicles in the Vehicle List (List - Customer & Vendor Profile Lists - Vehicle List) first, set up the mileage rate (Company - Enter Vehicle Mileage - Mileage Rates), record mileage driven (Company - Enter Vehicle Mileage) and then, record the vehicle, date, miles driven, odometer settings, and reason for the trip.
Usually with the actual expenses method, you get a higher business vehicle expense deduction. However, note that the IRS limits the amount that you can include as vehicle depreciation, so you may not get the highest deduction with this method.
No matter which method you use, you need to record of your actual business miles, which the Enter Vehicle Mileage command enables you to do. By law, you need a good record of business mileage to legitimately claim the deduction.
When you prepare your taxes you can use one of the reports generated by QuickBooks. (Reports - Jobs, Time & Mileage)
- Mileage by Vehicle Summary;
- Mileage by Vehicle Detail;
- Mileage by Job Summary;
- Mileage by Job Detail.
No comments:
Post a Comment