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How Are You Tracking Miles for Taxes??

Discussion in 'Taxes' started by skytessa, Dec 12, 2016.

  1. skytessa

    skytessa New Member

    Location:
    Los Angeles
    Okay, I'm new to the Uber thing, but I've done a lot of reading on how to keep my financial ducks in a row. I've tried MileIQ and honestly, it sucks. I've noticed it has completely wrong paths driven for my log. I did a comparison one day with my odometer and it was waaaaay off. Like 10 miles off on a day I drove 105. I'm guessing it's cuz it doesn't use GPS to track?

    I was considering buying an actual device that you plug in the car, but I wanted to check here to see if y'all had suggestions. The Mileage Ace is my top consideration since they dropped their price. Anyone use it? Thoughts?
     
    UberTaxPro and tohunt4me like this.
  2. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    Why spend money? All you need is a few pens and this:

    [​IMG]
     
  3. LAuberX

    LAuberX Moderator Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    paper and pen. write down starting and ending odometer readings with the date.

    keep forever, or at least 7 years.

    simple.
     
    Woodbury77, play2008 and UberTaxPro like this.
  4. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    As a rule you need to keep your records until the statute of limitations runs out for filing returns or filing for refunds. For most taxpayers that means three years. Unless you under report your income by more than 25% shown on your return. In that case you need to keep the records for six years. If you file a fraudulent return or no return at all you'll need to keep your records forever.
     
  5. skytessa

    skytessa New Member

    Location:
    Los Angeles
    Lol. Tried the paper thing. I always forget and just had to fudge my numbers in the past. I'm better off with something automatic. Anyone here use a device to track? That was my original question.
     

  6. Danny3xd

    Danny3xd Well-Known Member

    Location:
    Hartford
    Sky, have been using "Hurdlr" (sp)

    I really like it. Its actually free and not pretend free with pay to continue bs.

    At the end of the day, it asks personal or business miles.

    I like it a lot. Lots of posts about it, here.

    Just my preference and 2 cents. But do suggest ya check it out.
     
    UberTaxPro likes this.
  7. DCadran

    DCadran New Member

    Location:
    Massachusetts
    Guys, guys; use Stride Drive. It records your mileage in the background and automatically figures out what it translates into tax wise. In addition, it stores a map of every drive (talk about the ultimate back up if you get audited). Why use pen and paper?! We're supposed to be on the cutting edge.
     
    Craven Morehear likes this.
  8. jester121

    jester121 Well-Known Member

    Location:
    Chicago
    That's a terrible idea, unless you want to claim precisely the number of miles you drove with no fudge factor.
     
  9. Altima ATL

    Altima ATL Well-Known Member

    Location:
    Atlanta
    Driving:
    UberX
    I use 'mile-iq' runs in the background and logs all your trips, and can class as either business or personal.

    Costs about $6 a month - and is deductible too.
     
  10. DCadran

    DCadran New Member

    Location:
    Massachusetts
    Why would I need to fudge? Isn't that only done when you don't have accurate record keeping?...
     
    Archie Nelson and Woodbury77 like this.
  11. DelaJoe

    DelaJoe Well-Known Member

    Location:
    Delaware
    Driving:
    UberX
    I log everything into a spreadsheet..including my earnings and gas cost. I keep stats on my earnings per hour and earnings for the year. Make sure everything matches up to the 1099.
     
    gabrielcastellanos likes this.
  12. Can you just log the mileage? and dont worry about gas and other stuff?
     
    MrPincushion likes this.
  13. DCadran

    DCadran New Member

    Location:
    Massachusetts
    Guys, there's no point in tracking your gas. Take the standard mileage deduction. It's worth a lot more.
     
    Woodbury77 and LAuberX like this.
  14. Are you serious? or trolling?
     
  15. jester121

    jester121 Well-Known Member

    Location:
    Chicago
    Yes, you're right. No one would bump their mileage deduction by a little bit to save a few bucks on taxes or pad the refund check.
     
  16. Older Chauffeur

    Older Chauffeur Well-Known Member

    Location:
    Simi Valley Ca
    For most drivers the standard mileage rate seems to be best. It wouldn't hurt to track all vehicle operating expenses, just to see. If you have high maintenance and drive a gas guzzler but keep the dead miles to a minimum, who knows? But consider that if you use the same car for Uber and personal use, actual costs have to be allocated by the percentage of type of use, based on your mileage log, which is still required.
     
  17. skytessa

    skytessa New Member

    Location:
    Los Angeles
    My best friends mom is a CPA and she warned me against the actual deduction plan for your auto. Turns out you still need a log if you get audited bc the IRS will only give you the % of miles/deduction you use for business, and you prove that with a log.

    This thread has got me curious. I'm going to do a field test with an app, a paper log and a dedicated gps tracker. I want to see what saves me the most money and all the other pros/cons. I'll post back here after a week or so.

    Cheers .
     
  18. Danny3xd

    Danny3xd Well-Known Member

    Location:
    Hartford
    Cool, Tessa. Thanks and looking forward to your findings.

    The thing about using hurlr or that got me to try it was just that. You can export the documents and email them to yourself. After each start and stop and at the end of the day, you tell it business or personal. That and it is actually free. Honestly the only down side of it is it, like any of em, is it is a battery drain.

    Thing I found most surprising is I only use this car for working and how many miles that I couldn't ethically write off. Also, I didn't know the drive home was not deductible. (I'm a team player and believe in paying my share)

    I have not done it but you can also tie all expenses into the app and banking if you choose so all pertinent information for tax purposes are in one spot. I just use basic mileage, car washes, cleaning supplies, water etc. I found itemising and keeping receipts to be a pain and not at all advantages, in my case.

    All neat and tidy and in one place should an audit be needed. Back in the dark ages, I did the log thing.I always seemed to have forgotten some thing or lost that envelope of receipts. With an app approach, go more than 10 MPH and it turns on.

    I did try 2 or 3 other free apps and they were just fine. Right up until they informed me my free trial was almost up, lol.
    (Hate that bait & switch bs)
     
    skytessa likes this.
  19. UberTaxPro

    UberTaxPro Well-Known Member

    Location:
    CT
    Driving:
    UberX
    "Also, I didn't know the drive home was not deductible." Establishing a home office can often help to turn those miles into deductible miles. You might want to check that out for your 2016 taxes coming due soon.
     
  20. Danny3xd

    Danny3xd Well-Known Member

    Location:
    Hartford
    Great point, UTP. I had given it a lot of thought but was warned against by a few articles on avoiding IRS red flags and subsequent/possible audit.. In my particular circumstance, a home office deduction is really enticing. (and thank you for pointing it out)

    An accountant, tax pro is so worth the $! If for nothing else, peace of mind. A few years back, I filed fed and state and then paid $80 bucks to have checked by a pro a few days later. I just plain got compulsive but did feel infinitely more comfortable.
     
    UberTaxPro likes this.

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