The end of each new year means that it is time for the babysitters to write odometer notes for each car, truck or van you use for your business.
Record your odometer readings from December 31st. Write this down with your tax returns. Then, record the odometer calculations from January 1 of the coming year and record this with your next year’s tax returns.
You want to record odometer counts at the beginning and end of each year so you can calculate the number of miles you drive your car each year. This will help you determine how many miles you drive in doing business each year.
If you apply for a regular car loan application you can deduct this car loan business interest rate from your car tax (if your country has this tax).
If you use a real automotive revenue stream you can deduct the total amount of money you spend on your car (gas, fuel, repair, insurance, lower car prices, interest rates, etc.).
If you have not written an odometer reading for your car on January 1, try a comparison. If you have been driving your car around this day, look at the work invoice where the odometer reading can be recorded.
Or, you can take the number of miles you have driven the car since you own it and divide it by the number of months you have owned it. Add this average distance by 12 to measure your annual distance.
The car discount can be increased quickly so it pays to keep accurate odometer calculations each year.
For more information, see mine Family and Tax Book Tax Book.
Tom Copeland – www.tomcopelandblog.com
Categories: Traffic Fees, Records & Taxes