Did You Deduct Your Mileage? - Ep 159

Feb 27, 2024

Understanding your business financials goes beyond bookkeeping: it's about making informed strategic decisions that support your professional and personal goals. In this episode, CEO Danielle Hayden examines what it truly means for owners to manage their business and “know your numbers.” Challenging the misconception that business owners need a team of experts to reach their goals, the knowledge shared in this episode will empower CEOs to take charge of their business with confidence and clarity. Tune in now to transform your business financials!

 

Key Takeaways:

• Tax deductions for vehicle expenses depend on how often business owners use a vehicle for business purposes.
  
  
• Understand that deductions are tax savings that reduce taxable income, not a direct cash benefit.
  
  
• Consistent tracking and strategy of vehicle use are essential for claiming deductions.
  
  
• Adding a wrap or logo to a car does not qualify the vehicle as a full-time, 100% deductible advertising expense.
  
  
• Reimbursement depends on entity type: S-Corps would benefit from accountable plans, while LLCs have some flexibility in how they expense vehicles on their tax return. 

 

Topics Discussed:

Introduction to vehicle expenses as business deductions (1:20)

Vehicle Deductions: Mileage vs Actual Expenses (3:40)

Advantages of the mileage deduction strategy (5:01)

Vehicle deductions strategies for different business entity types (6:58)

Bookkeeping and the reimbursement process for vehicle deductions (8:15)

This week’s homework: actionable steps to implement a vehicle deduction strategy (9:36)

 

Learn more about MileIQ here: https://mileiq.com/

 

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