Last week, while my 9-month-old Kainalu was “helping” me sort tax documents, I remembered something crucial that most business owners overlook. It wasn’t the stack of receipts on my desk or the 1099s in my inbox – it was sitting right in my pocket.
But first, let me tell you about Sarah, a real estate agent who came to me last tax season.
“I probably drove 20,000 business miles last year,” she said, “but I only tracked maybe 2,000 of them.”
That hurt. At the 2024 standard mileage rate of 67 cents per mile, those untracked miles cost her over $12,000 in deductions.
That’s when I showed her what I’m about to show you.
The $7,432 Solution
There’s an app called MileIQ (and no, I’m not sponsored by them) that’s basically Tinder for your car rides. Here’s how it works:
- It automatically tracks every drive
- You swipe right for business, left for personal
- It calculates your tax deduction instantly
Simple, right?
The Real Numbers
Let’s break this down:
- Average business owner drives 15,000 business miles annually
- At 67 cents per mile = $10,050 deduction
- In the 24% tax bracket? That’s $2,412 saved
- Plus self-employment tax savings of about $1,537
- Total tax savings: $3,949
But Wait, What About Actual Expenses?
Yes, you can deduct actual car expenses instead of mileage. But here’s what 15 years as an Enrolled Agent has taught me: for most business owners, mileage wins. (Except for you, Truck owners – we need to talk!)
Why Most Business Owners Leave Money on the Table
- “I’ll remember to log my miles later” (No, you won’t)
- “I’ll just estimate” (The IRS loves this… not)
- “I’ll keep a paper log” (Until you forget it exists)
The Simple Solution
- Download MileIQ
- Let it run in the background
- Swipe rides during your coffee break
- Watch your tax savings grow
But Here’s the Thing…
The app is just one piece of the puzzle. To maximize your tax savings, you need a comprehensive tax strategy that looks at every aspect of your business.
Want to know how much you could be saving?
Email me at info@andrewsamaniego.com for:
- A free tax savings estimate
- Current tax preparation pricing
- My “Top 10 Overlooked Business Deductions” guide
Don’t let another year of deductions drive away. Your future self (and your bank account) will thank you.
Andrew “Driver Saver” Samaniego, EA, CTRC
Andrew Samaniego Tax Planning & Resolution
(619) 268-1084 | AndrewSamaniego.com
P.S. Tax season starts in two weeks. The earlier you get your strategy in place, the more you’ll save.
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