When you keep track of your miles while traveling on account of your business, you can save a large proportion of your cash that you might have otherwise spent on taxes. Tracking your miles is an effective way of cutting costs; especially, if you are based in the US.
But first and foremost - how can you curb your business mileage? You can reduce your mileage if your trip serves only one purpose: traveling for work.
You can enjoy a tax deduction on the mileage when you meet with clients or while you are on a sales call for a post office visit to dispatch shipment.
For instance, If you drive 15 miles to collect stock from a vendor and travel the same distance back to your workplace, you can save cash on 30 miles in total.
You can curb the money incurred as mileage tax by using a standard rate for each mile. The rate per mile was 54.5 cents in 2018. The following year, the rate per mile increased by 58 cents.
So, if you start keeping a tab on the miles you travel for business, the standard rate of mileage can significantly relieve your tax accountability.
In addition, food, lodging, and other costs that you might attract on the road are also deductible.
The mileage tracker that will serve your business the best is incumbent on your needs. Various apps cater to different purposes. Given below is a list of the five best mileage tracker apps for your reference.
MileIQ is the best mileage tracker app with features to mark your trip as "business." It recalls the route and allots it the same label for your future trips. This comes in handy if you regularly drive the same route for work. However, it is not applicable if you are a Rideshare driver because your routes will always vary.
The premium edition of the MileIQ mileage tracker has every version of Office 365 Premium.
MileIQ is not equipped with accounting capacities beyond calculating and tracking mileage.
MileIQ is the best mileage tracker app if you are working at irregular hours, as you can set your working hours on the app.
SherpaShare is a unique mileage tracker as it has features customized benefits for Rideshare drivers. The SmartDrive tools on the app help you keep tabs on your earnings by collecting data to help you profit more. The app's driver heatmap displays where your fellow drivers are operating from, so you can also map out your locations wisely.
SherpaShare has no free version.
SherpaShare is apt for you if you are into the ridesharing business.
TripLog is the best mileage tracker app that you can use for tracking mileage for taxes. It systematically keeps a record of your employees' mileage. This mileage tracker starts by activating an on-screen widget automatically.
If you have to manage many employees and vehicles, TripLog is the best mileage tracker for the job.
Hurdlr syncs with Rideshare and similar other "gig economy" applications and counts the taxes systematically. The application helps you know the amount you owe to the IRS. However, the mileage reports that Hurdlr furnishes may not be accurate, as is reported by the app users.
Hurdlr is the best mileage tracking app for real estate agents, freelancers, and 'gig economy workers.
The app has an automated IRS form generation system that helps you file your taxes without any hassle.
However, defective automatic mileage tracking can be a stumbling block.
The automatically generated IRS forms can be your best deal for the tax season.
Mileage trackers are gradually taking the onus of keeping a record of your trips these days. Some free mileage trackers let you take a certain number of trips before making you sign up for the complete or paid package. Other mileage tracker applications do not offer a free version but have several exciting features to offer.
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