2019 Mileage Tax Deduction For Business & How GPS Can Help Track The Mileage
A lot has happened this year and you need to keep track of it to ensure that your business remains healthy. The 2019 IRS standard mileage rate was announced as $0.58. This rate has increased by 3.5 cents from last years and it takes account of this year’s rise in gas prices and vehicle costs.
This rate is calculated based on the average costs of owning and operating an automobile for the previous year. The main purpose of this mileage rate is to serve as a safe harbor rate for businesses and employees who don’t track their business mileage.
There are a number of ways that this rate can impact your business. Although these changes are going to impact almost every company in the market today, they are likely to impact more on companies that use the IRS as their reimbursement method.
The mobile workers in various areas are likely to have different fuels and maintenance costs which may result in further reimbursement inequality. There are also some of the workers that are under reimbursed for business mileage and others are over reimbursed. What this means is that you need to invest in a reliable Mileage tracking system to give your company clear data to be able to establish your reimbursement. In this regard, Live Mileage GPS tracking can help. For more information, get in touch with Live Mileage GPS Tracking Provider GPS Leaders.
As you already know, there are a couple of factors that go into this rate and almost all of them originate from the operations of the company which usually links on the driving expenses. What this means is that there are some of the factors that led to these changes. Some of them include:
Rising Fuel Costs
The price of fuel keeps on changing from time to time. What this means is that it is never stable. It is a clear indication that the fuel efficiency offsets the increase in the costs of fuel but it didn’t have much impact over the last one year. The average fuel costs have risen by a significant amount over the last one year.
Increased Costs Of Maintaining The Vehicle
We don’t have to dwell so much on the gas costs because it is not the only factor that determine the mileage reimbursement rate. We also have to touch on the labor costs. We all know that the cost of repairing the vehicle is also a determining factor.
Changes In Vehicle Costs
Consumers have different tastes, needs and preferences that are impacting on new model prices. This impacts on the cost of vehicles they are about to purchase and their maintenance costs.
Higher Insurance Costs
The insurance market is also on the rise. If you look at the increased cases of peril, you can be sure that insurance companies are demanding more to insure these vehicles.
How Mileage Tax Deduction Works
Every employee is supposed to keep track of the mileage they drive for businesses purposes. Traditionally, they had to keep a pen and a paper in their cars for record keeping. Most of the businesses also gave their employees mileage reimbursement forms asking the employees about the Date, Business purpose, Origin, Destination, Miles traveled and Total Mileage.
Today, this has changed, Live mileage GPS tracking devices can help you track all this information without having to stress the employees with paperwork. GPS tracking system work background to record and rely data about the number of miles traveled, the destination, Business purpose and the date that business errand was performed. They also give you data about the number of miles that were traveled for business purposes and those for personal use.
Benefits Of Providing Mileage Tax Deduction
There are several advantages of offering Mileage reimbursement but the ultimate reason is to ensure that your employees are satisfied and happy. The other thing is that you receive a tax deduction when you reimburse employees for mileage.
One thing that most of the business owners don’t know is that employees who are reimbursed for their mileage will always be working towards the achievement of the company’s goals. In fact they will be more willing to make business related errands than those that are not reimbursed. They will feel fairly compensated and willing to work in line with the business’s goals.
Employees will not be worrying so much at incurring mileage costs because they are sure someone is there to cover them. Those employees that are not reimbursed are disgruntled and it usually affects their engagement with the company.
The other benefit that you get by providing reimbursement for mileage is that you receive tax break. This is an expense for your company and for this reason, you can file Form 1040 and Schedule C or Form 4562 and the IRS will give you a Business mileage deduction.
Live Mileage GPS Tracking Systems For Businesses
There are several things that the company can do but the wisest decision you can make is investing in live mileage GPS trackers. The reality of the matter is that keeping receipts and accurate mileage logs can be a daunting task without a reliable Mileage GPS Tracking device. There are few drivers who are willing to write their mileage information every single time they get in and out of their cars.
A good example is the field sales agents or real estate professionals who are always on their car. For these kinds of professionals, keeping track of each mileage manually can be a notorious chore. If you are one of those business owners who are looking for a reliable solution, then GPS leaders has something for you. The company uses GPS to automatically track every single mile your drivers and employees take. This live Mileage tracking device also calculates your deductions immediately to ensure that you have an easy time managing the company expenses.
This tracking system works silently at the background to gather all this information. You are just supposed to classify the trip with a swipe by simply tapping left or right if it was a personal trip or a business trip.
You can also get a live mileage tracking app that can always help you in this task. This tracking application demands less from your side. You can either command it manually to add previous trips or on the dashboard. It also gives you an easy time putting the mileage data that you already have on paper onto the logs.
The system also helps you track your business expenses and revenue. What this means is that it is now easy to track your entire business’s expenses.
Benefits Of Using Live Mileage GPS Tracking Devices
There are several benefits that you are likely to get when you start using Live Mileage GPS tracking systems to keep track of your business mileage. All the benefits will impact directly in the productivity of your employees and eventually reduction in the business expenses.
It Separates Your Business Miles
This is the first benefit that you get. With Fleet mileage tracking devices, your business will always be able to get a clear cut between the number of miles traveled for business errands and those traveled for personal purposes. You are just supposed to link the tracking system with your Smartphone or a computer and everything else will follow. There are several apps available that can help you in this. These applications will always record the miles and at the end of it separate your business miles from your personal miles.
We both know how difficult it can be to keep track of your personal and business miles manually especially if you use the same vehicle for business and personal use. The Live Mileage GPS tracking system will also record the overall mileage traveled for a year. At the end of it all, you will be able to calculate your Business-use percentage. The tracking system will give you reliable data about the number of miles traveled overall and the ones traveled for business and personal purpose. If the total miles traveled is A Miles and the ones traveled for Business purposes are B Miles, then the Business-use Percentage is B/AX 100.
After you have all the data required for calculating the mileage, then you are supposed to report your mileage. GPS tracking systems make it easier for you to do this. You will get all the data that you need to fill Schedule C of your Business Tax return. You have the overall miles traveled and the ones traveled to perform business errands.
The Bottom Line
Smart Businessmen choose smart tools to help them ease the work in office. With all the benefits that accrue after reimbursement, you have to invest in a reliable Live Mileage GPS tracking systems for your business. Start keeping track of your car expenses even if you think there will be fewer business trips. For the best deals in Tracking your car’s mileage, contact Live Mileage GPS Tracking Provider GPS Leaders.