By in Business

Tax Deduction Question

Help please! With tax season upon us I want to make sure everything I do is right.

I have my own little side business that I've been running (pet sitting out of people's homes) and i have been keeping track of my earnings to report on my taxes so that I do everything legally and don't get in trouble.

Well a while ago a friend from work told me I could claim travel time/mileage on the taxes as part of the deductions. I looked it up and sure enough you can claim 56 cents per mile for business travel.

But what I'm wondering is how many of the miles do I claim? Only one way? The round trip? every mile that was driven for my pet sitting jobs?

I have tried researching this myself, but I'm not finding the answer/

If anyone knows please help!

Thank you!


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Comments

crowntower wrote on February 24, 2015, 7:30 PM

I know as long as it is the expenses used for your business all fare should be counted. I hope you get it all right, might as well why not contact the tax department at your place and ask them on how to compute it, because here in our country we can inquire to them, and ask them to teach us how to compute our taxes and it is included in their job. God bless.

DWDavisRSL wrote on February 24, 2015, 10:07 PM

How much you can deduct for travel depends on a lot of things. If you are working out of your home, the drive from your home to the first house you visit, and from the last house back to your home, may not be okay to use at those two stretches might be considered commuting. All the other miles from house 1 to the other houses up to the last house should be okay to use. Also, there is an amount of depreciation built into the 56 cents a mile that you might want to keep track of depending on how much you use your vehicle for business. It probably won't amount to much but could affect whether you have any taxable gain when you eventually sell the vehicle. If this business generates a fair amount of income and you think you have a number of things you might be able to deduct: business insurance, office supplies, postage, things like that, you may want to talk to a tax accountant or CPA. If it is a small side business a program like TurboTax Home & Business may be enough to guide you through what you can and cannot deduct. Keep in mind, tax forms that include self employment income are more likely to be audited than those with just regular items like W-2 income and bank interest, so you want to make sure you're reporting everything correctly.

wolfgirl569 wrote on February 24, 2015, 11:10 PM

Seems to me it would be both ways. You have to get there and then get back or to the next job.

Began1988 wrote on February 24, 2015, 11:11 PM

It is just a small side business, and really travel is the only thing I spend money on in the business. I don't work out of my home, I dog sit in the owners homes. So I drive from my home to theirs (first for meet and greets and then for actual jobs). I have an excel spreadsheet that I use to keep track of everything i make, and I have another sheet for the mileage.

Carmelanirel wrote on February 26, 2015, 11:16 AM

like wolfgirl569 said, I would think it is both ways, but I'm not sure. I hope you get them done, my daughter who also owns a small business went last night to get her taxes done and I really hope she doesn't have to pay a lot.

Began1988 wrote on February 27, 2015, 9:04 PM

I use TurboTax (my brother or dad helps me do my taxes) so I don't have to go anywhere (yay) lol. I'm hoping I don't have to pay a lot too! It would really suck to have money taken away instead of getting a nice big check like everyone else is expecting. -_-

Carmelanirel wrote on March 1, 2015, 9:55 AM

That's great that you have some help, I know I couldn't do it myself,, too complicated..