If you own a business, you may be able to deduct the cost of business-related travel from your taxes. This includes travel by car, plane, train, or bus. You can deduct these expenses even if you use your personal vehicle for business travel.
To deduct business-related travel expenses, you must keep track of your mileage. You can do this by keeping a log of your travels or by using the Mileage tracker app for Android that tracks your mileage automatically.
Let’s explore how!
How to use an app to track your business mileage?
There are a few different ways to track your business mileage, but using an app is definitely the most convenient option. There are a number of apps out there that can do this, so just choose the one that you think will work best for you.
Once you have the app installed, make sure to set it up properly. This usually just involves inputting some basic information about your business, such as your company name and address.
Whenever you need to track your mileage, simply open up the app and start recording your journey. Most apps will use your phone’s GPS to track your route, so all you need to do is make sure that the GPS is turned on. Once you’re done, the app will automatically calculate how far you’ve traveled and how much it will cost you in fuel.
What are the pros and cons of using an app to track business mileage?
The main advantage of using an app to track your business mileage is that it’s extremely accurate. This is important because the IRS has very strict rules about how business mileage is calculated, and if you don’t have accurate records, you could end up owing a lot of money.
Another advantage is that it’s much easier to keep track of your mileage if you use an app. You can set it up so that it automatically starts tracking when you start driving. At the end of the year, you’ll have a complete record of all the business miles you drove.
The main disadvantage of using an app to track your business mileage is the cost. There are a number of different apps available, and they all charge a monthly or annual fee.
How to make the most of tracking your business mileage?
There are a few things you can do to make the most of tracking your business mileage.
First, make sure you have a good system in place for tracking your mileage. This could be a simple spreadsheet or even a dedicated app on your phone.
Second, try to be as consistent as possible with your tracking.
Finally, don’t forget to keep track of any other expenses related to your business travel, such as parking fees or tolls. These can add up quickly and can be deducted from your taxes at the end of the year.
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