This is a major pain. Now there is a new system that will save you time now, by eliminating the manually logged data, and later, when it is time to do your taxes. It's called "Mileage Logger", a product from Vulocity (www.vulocity.com). The device automatically tracks the mileage using GPS and sends this information over the cell phone data network to Vulocity.
The device is designed to record using motion activation, and to require no human interaction. The device also has manual stop and start buttons. The device is small, about the size of a laptop power supply. If necessary, the device can be moved independent of the vehicle using a rechargeable battery.
This gadget will enhance your credibility with the IRS. Last year, vehicle expense accounted for about 15% of all tax deductions. Mileage Logger uses GPS to log your miles, and sends the data over the GSM cellular network to Vulocity's servers.
To see your activity, you log in to Vulocity's servers. Here, you can assign trips to business or personal use, and manually input mileage. Each record contains addresses and maps to help you remember the purpose of the trip. You can export the records to an Excel importable file, and merge, delete or add records.
There is an optional "locate on demand" feature that can be used to locate your vehicle if it is stolen, or to track your fleet of vehicles. This service costs $1 a month, in addition to the normal subscription fee.
IRS
IRS standard business mileage rate deduction for 2009 is 55¢ per mile (30,000 business miles equates to a $16,500 reduction in taxable income). The business mileage rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half. The number of IRS Schedule C Audits have increased by more than 100% over the last decade. With this year's increase in mileage rate, a further increase in audit rate is anticipated. The Mileage Logger exceeds the IRS imposed mileage log book requirements.
"I spend most of my time in representation of clients before the IRS, and that includes audits", says Charles Bell, an "IRS Enrolled Agent" (certified specialization in IRS accounting) based in Richardson, Texas. "I see often that very few people are prepared for audits regarding substantiating their mileage. It should be an easy task, but it’s just one of those things that human nature says, let’s not bother with it now, we’ll deal with it later."
A recent Syracuse University study has revealed that an increasing number of small businesses are being targeted by the IRS for audits. The smallest businesses were audited 41 percent more often in 2007 than in 2005.
OBD 2 Port
Mileage Logger connects to your vehicle via the OBD 2 port. This port is designed for vehicle diagnostics, especially pollution control, and has been required equipment for all vehicles since 1996.
The OBD 2 connector will be located within three feet of the driver. It is probably under the dash or behind an ashtray.
Mileage Logger currently sales for $200 plus a $19 per month subscription fee.
0 comments:
Post a Comment