Wednesday, April 16, 2008

Log Those Miles, Save your Receipts and Documents for Next Tax Season

Whew! Now that April 15th has come and gone, most of us can breathe a sigh of relief until the taxman cometh next year. If you haven't already done so, now would be a great time to make preparations for next tax season. Forget stuffing all of your receipts into an old shoe box and dealing with the nightmare of sorting through everything when it's time to do your taxes! It's time to get organized, and consider investing in some very useful tools to make doing your taxes much easier.

Log your mileage automatically, and claim a mileage deduction on your taxes!
Do you regularly drive as part of your work duties or do you own a business? If you work in a job that requires you to log lots of (TAX DEDUCTIBLE miles), then boy do I have a cool tool for you! Now that gas is upwards of $3/gal )and we may see the price get closer to $5/gal in the future) nobody can afford to ignore the 50.5 cent per mile deduction that the IRS allows for 2008! We're talking about some serious cash people, and you're a fool if you don't deduct your allowable mileage! Enter the Mileage Logger from Vulocity. This cool device tracks and stores your movement automatically via GPS technology. Periodically it will upload the data to company servers via it's built in celluar modem. (there's a nominal monthly fee for the cellular data service, and you even have the option to add emergency notification and vehicle tracking services if you wish) Once the data is uploaded, You logon to their secure web site and then select which trips are business related, which are personal, etc. Their system converts the GPS data into addresses and automatically calculates the miles driven between stops. The resulting data and mileage logs can then be exported into your finance or tax software and presented as IRS Compliant Mileage logs when it's time to do your taxes, allowing you to maximize your mileage deductions with no extra effort. How cool is that?

If you drive for business, this device log your miles automatically making obtaining a mileage reimbursement a piece of cake! Just plug in Vulocity Mileage Logger in your car and drive!

Save $15 on Mileage Logger - a business owner's most indispensable tool. Use code COUPON052008 at checkout. Offer ends 5/31/08

Save and scan those receipts!
NeatReceipts has come out with a great receipt scanner that allows you to organize your receipts into various categories using their software which is approved by the Internal Revenue Service. You can scan and organize your statements and expenses and export to Excel, TurboTax, Quicken and QuickBooks making keeping track of things a snap.

Use Personal Finance Software
Consider using personal finance software to keep track of your finances and expenses. Programs such as Quicken make easy work of balancing your checkbook, tracking your expenses (especially for tax purposes) and allow you to know how much you have and where at a glance.

Accurately Calculate and Document Your Charitable Item Contributions
Using software such as Intuit's It's Deductible, you can easily place a value on any items that you donate to charity. Rather than guessing what items are worth and possibly shortchanging yourself, use the software to determine the IRS allowable deduction for every item you donate! You'll be amazed at how quickly those deductions can add up.

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