Hi folks, I do home based part-time consulting in addition to my full time job. While doing my taxes I realized that I can deduct the mileage spent going to Bank, Post Office, Client’s Office and Hardware Store. I didn’t not log my miles every time I got in and out of the car but my bank deposit proves my travel to the bank, my credit card purchases prove my travel to hardware store and my PO BOX proves that I had to go to post office to pickup the mail.
Is that enough proof to deduct my 700 miles for business errands for past year ?
My total number of miles for the year is about 9500 miles which out of that 3500 is for commuting to my full time job office.
I keep reading that IRS scrutinizes mileage deductions and it’s a well known red flag. Is it even worth taking the 0 deduction here, especially that I didn’t keep a detailed daily log and my only proofs are what I listed above?
I understand that each trip needs to be logged and proved. Can this log be created at the end of the year using the transaction information from Credit Card, Bank Account and online map to see the miles traveled ? Or does it HAVE to be logged on the same day of the trip.

A good friend of mine owns a Jani-King cleaning franchise and my wife has been employed by him for a couple of years. Starting last year my wife started doing it full-time. I have a couple of questions…

1. We have received about ,000.00 in income during 2007 and have not paid any taxes on that income. What kind of percentage of that income can we expect to pay?

2. Her boss provides all of the supplies, however we use one of our personal vehicle to go from job site to job site. I know she drives approximately 250 miles each week. Can we deduct the mileage as business expense as long as we know what the daily amount is (we have kept track).

3. Should I look at any other deductions?

I know there will be people that will say that we need to speak to an accountant, and we intend to. I am just looking for a little education before we meet with one.

Any assistance is greatly appreciated.
I should have clarified the section about my income. I work for an employer (city government) and our total household income was about 53K including the 12K we made as a contractor.

I’ve been doing a good amount of business travel lately. My employer reimburses mileage and provides a per diem. However, both those amounts are below the standard IRS rates. For instance, the IRS mileage deduction is {content}.485 per mile, while my company reimburses {content}.405 cents per mile. The IRS per diem for the region I travel to is / day while my company pays / day.
When I file my 2007 taxes, can I claim the difference between the allowable and actual reimbursements and an unreimbursed business expense?
I travelled 2,000 miles for business, so was reimbursed 0. At the IRS mileage rate, that would have been 0. Can I claim the 0 as an unreimbursed business expense? Is the scenario different for mileage and the per diem?

I’d prefer answers from folks who have actually faced the situation (or tax specialists) rather than speculation. Many thanks!

My husband receives a car allowance with each pay period. He also receives reimbursement for gas and maintenance. But nothing for car insurance. Now it seems the car allowance is taxable income on our W-2 but our H& R Block Tax Provider says it is not being taxed. But when I look at his W2 it shows up on line 1. I’m a little confused??? Can we deduct any of the car allowance off? How do we know if we are getting the full amount in reimbursement compared to the .48 mile reimbursement. Is there a standard way to compare?
Also, is there a depreciation deduction if he is putting a lot of miles on his car for business.
Yes, he keeps a mileage log and records of gas and maintenance reimbursement.

mileage rate deduction for gas do we deduct that from self employement or business?

I want to claim 7 allowances, my payroll manager said that was an awful lot. She would not offer any "adivse" or help to determine the number. So am I crazy? Perhaps someone out here can help me out…

I am filing jointly.
I make 000 with 00 annual bonus
My wife makes 000 with no regular bonus
No significant dividends, interest, etc.

Itemized Deductions:
000 Total Mortgage Interest for the year
00 Property Tax
0 Ad Volerum Tax (My State’s "Birthday" Tax)
00 State Tax
0 Charity
0 Car Loan Interest (does this even qualify?)
00 Business Mileage (this was reimbursed, do I still use it?)
00 Health Insurance (this may be pre-taxed?)
50 My 401K contribution (this may be pre-taxed?)
50 My Wife’s 401K contribution (again might be pre-taxed?)
No Children

I am guessing whatever the magic number is that I would do that only one W4, and would claim 0 on the other form…
In response to the third reply:

I was under the impression that deductions were most definitely revelant to Allowances you would claim. Is this not true? Isn’t the point to claim enough allowances so that you are very close to what you actually owe at the end of the year after deductions and credits.

Also, I was about 99% sure the Car Loan, Mileage, 401K, and Health Insurance did not qualify. I just wanted to check.

I am an employee of a greeting card company. I am paid salary, not commission. I am given a 0 a month expense check to cover office supplies, gas, phone, etc. However, with the cost of gas, this is not covering even gas. I am tempted to claim business mileage, however, I’m not sure I even can as, technically, I am given money for gas. My tax lady said that it wouldn’t be worth it – as my deductions would have to be more than ,600 (my deduction for being married on my federal taxes). I’m so confused. I’m pretty sure that I should be able to keep a log and claim business mileage, but I would hate to do all that work only to find out I don’t qualify. Can anyone help me by putting this in laymans terms? Thanks a bunch!

O.k this question has several parts:
Attempting to claim standard mileage deduction on taxes, on the form it requests "Business" ; "Commuting" and "Other", is "Business" only included in figuring the deduction amount?

Let’s say you install flooring for example…

You drive from your home to the flooring store that sold the flooring to the customer,and subcontracted you to install the floor. Is this mileage classified as "Business" or "Commuting" ?

You transport the flooring to the customer’s location, install it and travel back to the flooring store to turn in a bill, and ask if they have a job for you the next day. Are these miles classified as "business"?

You leave the flooring store and return home. "Commuting" or "Business"?

You leave the job site and travel to Lowes or Flooring Store for supplies. "Business" or "Commuting" or "Other"?

You leave one job site and travel to another to begin work. "Business" or "Commuting"?

You leave the job site and return home. "Business" or "Commuting"?

Thanks.

How do I figure mileage deduction for taxes? I know how many miles I traveled last year that are work related, and I get a 1099 for my business. What do I get to deduct per mile? I drove about 14,000 miles in business related travel last year.
I have the exact number written down somewhere that is just a ball park figure.

My situation:2007 Consulting income: 40K; Anticipated 2008 consulting income: k.
Have 2001 Accord. (Jan-Oct) 12k miles (4 K business)
I want to buy a 2nd vehicle (a SUV) on Nov 1, 2007. Should I buy a < or > 6000 pound vehicle. On this vehicle mileage (business) is 3000 miles for Nov-Dec, tell me:
How much deduction can I get for < 6000 pound vehicle and for > 6000 pound vehicle for 2007?