2007 Mileage Rate and Expense Reporting
The 2007 mileage rate is 48.5 cents per mile for those who utilize their personal vehicle for business use. Whether you own the business yourself or work for someone else tax law requires you to keep a by day log to support your business miles. Just as when you would work for someone else and be required to turn in an expense report to get reimbursed for any business expenses you might have paid personally, so it is when you are the owner as well as the employee. As it is difficult to recall all the business expenses you might have incurred after the fact, it is usually most advantageous to track items as you go being sure to properly list and document business expenditures you personally pay as they are incurred.
An expense report does not need to be elaborate but it should include the nature and purpose of the business expense and all receipts, in accordance with tax law, over $75 would be maintained. Usually it is easiest to keep copies of all credit card receipts and when needed adding copies of the actual receipts to clarify the actual nature of an expense.
Periodic and consistent tracking such as turning in an expense report at least monthly and perhaps even weekly if you travel often is the best way to stay abreast of expenditures as they are incurred and to seek and obtain current reimbursement for them. If you are able it is always best to obtain reimbursement for expenses rather than deducting these monies on your personal return as these monies would be a tax free reimbursement of monies to your personal assets rather than a tax deduction which is limited, by tax law, to only the excess of the un-reimbursed business expenses which exceed seven and one-half percent of your adjusted gross income.
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