Monday, November 28, 2011

No Mileage Rcords

Dear June,

First I would like to say thank you for sharing your tax expertise with so many. We need the help! Especially me. This is my first year working my own business and I'm quite lost with tallying up all the business expenses and which ones I can tally up being appropriate.

One of my main questions I need help with is mileage. Earlier in the year I worked as an independent contractor for a photography company which required me to put a ton of miles on my car driving to and from different customers homes to show them the photos. My husband told me I should have kept a book logging each and every mile from every day, including my mileage for my new business (permanent makeup).

Needless to say, I didn't realize I was supposed to keep such a log, however, would like to write off the miles. Could you please advise me and tell me if there are any other options?

Thanks so much for your help! It is very much appreciated.

Kristina, your husband is correct but why didn't he tell you sooner?!

You will need to reconstruct your time as an independent. Pull out your calendar, receipts, phone records, anything that can help recall where you went and when. Keep in mind errands that you did. A post office receipt means a trip to the post office. Same with an office supply store receipt. Then go to mapquest or the like and start charting mileage.

Every 20 business miles may say you about $3 to $4 in taxes. So you decide how much your time is worth and whether the reconstructing will be of value.

-- June

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