Tax Tips Category

Tax Tips for your personal and business needs.

Tracking your mileage can be a pain because you have to remember to write down every single drive. It may not seem that tough but when you're running late for a meeting, the last thing you're thinking of is logging your mileage.

If you're self-employed, you already know the value of maximizing your tax deductions and credits. One important deduction is your motor vehicle expenses, including your mileage.

That's why you should consider using MileIQ, an automatic mileage-logging service that makes tracking, logging and calculating the value of your kilometres easier than ever.

Why Use MileIQ?

MileIQ is a mileage-tracking app that provides automatic tracking and logging of your drives. That means you don't have to start and stop the app with every drive. You just go about your day, do your job and your mileage log will automatically be created for you.

Of course, the CRA requires you to know which drives were for business and which ones were for personal. MileIQ makes classifying your drives a breeze: simply swipe a drive to the right to classify is as business or to the left to classify as personal.

MileIQ creates records that comply with what the CRA wants from its logbooks. You can print it out or easily share it with your professional bookkeeper with just a few taps.

An added advantage is that you don't ever have to worry about losing or damaging your records, either. Your mileage log is securely stored in the cloud and you can access it whenever you or your tax pro need it.

That's key because the CRA advises you to keep your documentation for six years from the end of the tax year.

How to Use MileIQ For Your Taxes

First, download MileIQ for iPhone or Android. Sign into your account and then just go about your business like you normally would. Once a week or so, use the app or the web dashboard to classify your drives as business or personal.

To get a deduction, the CRA requires you to track your motor vehicle expenses and your mileage. These expenses include license fees, gas and oil, insurance, interest and maintenance. Once you have your total vehicle expenses and the total number of business and personal kilometres, use this formula:

(Business kilometres ÷Total Kilometres) X Total Vehicle Expenses = Total Motor Vehicle Deduction

For example, let's assume your total vehicle expenses were $4,500 for the year. You drove 24,000 kilometres for business and put 29,000 kilometres on your car for overall. The amount you could claim for your mileage would be: $3,724.14

(24,000 business kilometres ÷29,000 total kilometres) X $4,500 = $3,724.14

Using Apps To Be More Productive

MileIQ helps you get the largest deduction you're entitled to. But, importantly, it also gives you peace of mind. You can stop worrying about tedious, yet important, tasks like tracking your kilometres and focus on what you care about.

That could be growing your business or that could be spending time with the people you care about. Either way, you're freed up to think about other things, while remaining confident that you're set for tax time.

 

 

Guest Author: Marin Perez

Marin Perez is a marketing manager at MileIQ, a service that enables individuals and businesses to efficiently track and report their mileage.

 

Note: This guest article has been provided by our good friends at MileIQ. We generally avoid sales-oriented blog posts from third parties, but we felt that our small business readers will not only find the content above helpful, but will also appreciate an app that can solve mileage tracking.

- LedgersOnline Team


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