CLAIMING MILEAGE EXPENSES
The miles that you drive which are in any way related to the
operation of your daycare or the actual expenses require to maintain
your automobile can be deducted from your income at tax time. There
are two ways to utilize this deduction.
METHOD 1
THE IRS ADJUSTED MILEAGE ALLOWANCE
With this method you need to keep track of the miles you drive which
are exclusively for daycare purposes. A trip to the grocery store to
pick up food for your family AND your daycare does not qualify for
toward this deduction. You need to be making the trip just for the
benefit of your daycare. For the period of January 1, 1999 through
March 31, 1999, you may utilize 32.5 cents per mile traveled for your
business. As of April 1, 1999, this mileage allowance has been
decreased to 31 cents per mile.
Click
here for a good mileage record book.
METHOD 2
THE ACTUAL EXPENSE DEDUCTION
To claim expenses with this method, you need to keep track of all
receipts related to the operation of your vehicle. You can include
gasoline, oil, repairs, license, insurance, depreciation, parking
fees, and tolls. In order to use this method, you must keep track of
ALL miles traveled in the vehicle. It is wise to keep one mileage log
to record business miles and another to record personal miles. At the
end of the year you will determine your business use of this vehicle
for tax purposes.
For more information on either method, you can request Publication
917 (Business Use of A Car) free of charge by calling the IRS at
800-829-3676 or visiting them on the Internet at www.irs.gov.
Brigitte A. Thompson, President (WAHM of Sarah 1/93 and Jacob
4/97) DATAMASTER, LLC~
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About the Author:
All articles ©Copyright 1999 Brigitte A. Thompson
Brigitte is the President of DATAMASTER, LLC and has been providing
accounting, bookkeeping, income tax and payroll services since 1992.
She has also operated a home daycare for years and has written a
book
for providers :
The Home Daycare Complete Record-keeping System
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