In today’s article, we’ll explore how to use mileage tracking apps to save money at tax time. As a real estate agent, you spend a lot of time driving to various properties for showings, open house events and client meetings. Realtors who serve a rural area, where the distance between properties is measured in acres or miles instead of feet, can spend even more time on the go. For a few, the time spend inside the car exceeds the amount of time spent in an office.
As a result, real estate professionals spend a lot of money on gasoline. There is also the cost of car maintenance and repairs. But fortunately, these business-related expenses are tax deductible, which can result in a very significant savings at tax time. In 2015, the IRS allowed a $.54 deduction per mile driven.
But in order to make the most of your potential tax deductions, it’s essential to keep a detailed record of your mileage. And that’s something that’s much easier said than done. Keeping a written (or digital) mileage record is just plain inconvenient — that is, if you can even remember to mark down the mileage before and after each work-related drive.
Fortunately, there are a number of apps that can help Realtors and other on-the-go professionals to track their mileage without all the hassle. Mileage tracking apps provide a clever and convenient option for tracking the details of your drive.
Mileage Tracking Apps: TrackMyDrive
The TrackMyDrive app is available for iPhone and Android-powered smartphones. This app runs in the background, tracking your movements via GPS technology.
Everything is automatic with this app, so those who rarely remember to note their mileage at the beginning and end of each trip can eliminate the problem of forgetfulness.
Each trip is logged once you’ve been stationary for a period of five minutes. The TrackMyDrive app gives you the option to classify the drive as business-related or personal. You can also make notations, so keeping a detailed record is simple and easy.
With this mileage tracking app, users can also add a trip in manually. Trip logs, which are saved in the cloud, can then be exported to a range of different document types, providing easy documentation at tax time.
Mileage Tracking Apps: MileIQ
The MileIQ app is available for iPhone and Android-powered smartphones. Like TrackMyDrive, MileIQ automatically detects and tracks each drive so there’s no need to take action at the beginning and end of each trip.
This mileage app allows users to classify the trip as a personal trip, a business trip, a charity-related trip, medical-related travels or any other customized category.
MileIQ requires you to sign up for a user account; once you’ve joined, your data is stored and logged. It can be accessed and printed from any device.
MileIQ offers a total of 40 free drives per month; thereafter, the app charges $5.99 per month or $59.99 per year.
With a mileage tracking app for your iPhone or Android smartphone, Realtors can maximize their savings at tax time. You can literally save hundreds or even thousands of dollars (depending upon how much you earn and drive!)
For more tips for Realtors, learn about how to use open house events to increase home sales. Or learn more about real estate photography and real estate aerial drone videos and how these visuals can serve as very valuable marketing tools that can be used to elevate your career to the next level.
Then, turn to real estate professional and consultant Judy Szablak, founder and CEO of Szablak Consulting and Best Agents Online, LLC. With Judy’s help and expertise, you’ll take your career to new places, finding success in today’s hyper competitive real estate field.
If you’re a real estate agent who is ready to boost your sales or if you’re a realty owner or manager who’s seeking a dynamic, expert coach to bring a new element of professionalism to your sales team or brokerage firm, turn to Szablak Consulting. Call 855.438.5839 or complete the booking form.