Setting up Chart of Accounts Part 2 – Bank and Credit Cards
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4 Comments
John W on February 16, 2019 at 5:24 pm
My assumption would be, that if we claim auto expenses of any kind, we will have to keep a mileage log for tax purposes as well and then can only claim the percentages of expenses relative to the percentage of use?
I keep up with all my expenses, including auto. In doing so, a CPA can advise best options for claiming on our taxes. MileIQ is the app I use to track and categorize mileage. In the app, we are able to breakdown personal and business miles, including sub-categories like medical, errands, etc. I can then run reports as needed from the app/website. My advice is to track EVERYTHING.
If Turbo Tax is used, there is an in-depth interview that will ask for all the expenses, mileage and other info on the vehicle use to help you decide which way to file auto expenses, actual or mileage. I use Turbo Tax Self-Employed and generally just claim mileage, so the actual expenses aren’t “claimed”, but are taken into consideration in the worksheet to decide my best option. Hope that helps.
If you did it right, the accounts will be there when you need them. If you did it wrong, they will not. If you don’t find the accounts in the chart of accounts, just go back and review the assignment, along with the lesson. You should be able to follow along with the video for each account needed. Let me know if you have trouble doing it. I think you’ll be fine. Hang in there. It gets easier.
My assumption would be, that if we claim auto expenses of any kind, we will have to keep a mileage log for tax purposes as well and then can only claim the percentages of expenses relative to the percentage of use?
Hi John,
I keep up with all my expenses, including auto. In doing so, a CPA can advise best options for claiming on our taxes. MileIQ is the app I use to track and categorize mileage. In the app, we are able to breakdown personal and business miles, including sub-categories like medical, errands, etc. I can then run reports as needed from the app/website. My advice is to track EVERYTHING.
If Turbo Tax is used, there is an in-depth interview that will ask for all the expenses, mileage and other info on the vehicle use to help you decide which way to file auto expenses, actual or mileage. I use Turbo Tax Self-Employed and generally just claim mileage, so the actual expenses aren’t “claimed”, but are taken into consideration in the worksheet to decide my best option. Hope that helps.
Finished the lesson, but not sure if I did the assignment correctly???
If you did it right, the accounts will be there when you need them. If you did it wrong, they will not. If you don’t find the accounts in the chart of accounts, just go back and review the assignment, along with the lesson. You should be able to follow along with the video for each account needed. Let me know if you have trouble doing it. I think you’ll be fine. Hang in there. It gets easier.