Posted by Susan Fischer on 4/13/07 1:49pm
Msg #185046

Easy formula for annual miles driven:

Total miles = total gas cost X MPG / (divided by) price per gal

So, for example, if cost of gas in '06 = $2100
MPG = 25
Avg. cost per gal = $2.80

then total miles = 18,750

I gave Dad the three factors, he came up with the math. Gotta love those engineers!

Cheers,
Susie

Reply by Calnotary on 4/13/07 2:37pm
Msg #185051

Try to use that formula with the IRS.

Reply by LynnNC on 4/13/07 2:54pm
Msg #185054

I figure mileage the same way for my husband who keeps no mileage records (I do).

Reply by Susan Fischer on 4/13/07 3:17pm
Msg #185058

Works for me. I check my mpg about once a month - and use highest mos. for mpg [which lowers miles driven]. Prices verified by receipts - (always higher in summer, here), as is total paid for gas. Total miles driven just about spot on with odometer.

Since I don't drive my car except for work, I can't see a problem.

Reply by Glenn Strickler on 4/13/07 3:33pm
Msg #185060

I have had a couple of audits over the years, and I don't see this holding up. An accurate log of business miles was never questioned .. and they wanted to see my mileage records ....

Reply by BrendaTx on 4/13/07 3:56pm
Msg #185066

Re: Easy formula for annual miles driven: What if...

What if Susan is not estimating the number of miles she was using the vehicle for jobs but using this means for estimating miles for ALL miles driven over the year?

I don't know...just asking about it. Obviously all miles are not business. I think she knows that and would not estimate ALL miles driven based on her gas purchases. That's why I think this is more about all miles, not just business miles.

Reply by PAW on 4/13/07 4:02pm
Msg #185071

IRS rules state you must keep track of ALL miles AND ...

business miles.

Reply by BrendaTx on 4/13/07 4:03pm
Msg #185072

Paul, thank you...that answers that. n/m

Reply by PAW on 4/13/07 3:37pm
Msg #185062

You must keep a log, per IRS rules

See Publication 463, page 26 - http://www.irs.gov/pub/irs-pdf/p463.pdf

In part, it states, "You must be able to prove the elements listed across the top portion of the chart. You prove them by having the information and receipts (where needed) for the expenses listed in the first column.

"You cannot deduct amounts that you approximate or estimate."


Also, you may want to read this NY Times article from last year - http://tinyurl.com/yqxgy8

Reply by Susan Fischer on 4/13/07 4:32pm
Msg #185075

I understand that. But since I am not estimating, nor am

I approximating, I still don't see.

An average is based not on a guess, but real, provable numbers.

I *know* what I paid for gas. (and, yes, Brenda, I see your point - but I use Dad's car for anything not business - he doesn't drive much, and it keeps it in use. I am a CASA, and keep track of miles for volunteering and reporting, but that's it.)

I can prove my mpg.

I can add up the gas receipts and get the actual average over the year.

What am I approximating/estimating here?

Thanks.

Reply by Lee/AR on 4/13/07 4:43pm
Msg #185078

Re: I understand that. But since I am not estimating, nor am

You can take actual proveable expenses, gas, oil, tires, repairs, etc. based upon percentage of business use--100% red flags it. OR, you keep a mileage log. The mileage log usually works out better for you.

Reply by PAW on 4/13/07 4:46pm
Msg #185081

Re: I understand that. But since I am not estimating, nor a

You're approximating the miles driven which is used to calculate your deduction (miles x rate = deduction). You cannot approximate the miles driven. It must be logged showing actual TOTAL miles and actual BUSINESS miles PER TRIP. That's the rule.

From Pub 463:

- Cost of each separate expense.

- For car expenses, the cost of the car and any improvements, the date you started using it for business,

- the mileage for each business use,

- and the total miles for the year.

Reply by Susan Fischer on 4/13/07 5:16pm
Msg #185085

Ok. Thank you. Docs printed, gotta go. n/m

Reply by Susan Fischer on 4/13/07 10:36pm
Msg #185163

Re: I understand that. But since I am not estimating, nor a n/m

Reply by jojo_MN on 4/13/07 11:03pm
Msg #185167

I keep a keep the mileage in my daily journal on an exel

spread sheet. Example: My closing is 45.5 miles from my house. I would enter 91 miles for mileage column. At the end of the year all I have to do is mark that column and do the auto-sum and I have the total miles driven. If a signing is cancelled, but still billed out, I just put a zero in the column or it won't add the entire column. Works great.

Reply by Susan Fischer on 4/13/07 11:51pm
Msg #185169

So, you're saying if you drive to a signing, and borrowers

cancel and you don't get paid, you don't claim the mileage?

Reply by jojo_MN on 4/14/07 12:17am
Msg #185171

Yes, I always claim the travel. If the closing is cancelled

after I print the docs, I charge for the print fee, but there wouldn't be any miles traveled. I would also have zeros in the columns for # of notarizations, etc in this case.