Are you overlooking these tax write-offs?

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June 29, 2016
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Are you overlooking these tax write-offs?

Chasing your dollars

Chasing down tax write offsDrop a penny, and it’s likely you won’t stop to pick it up. It just doesn’t seem to be worth the effort.

Drop a quarter, and maybe you’ll pick it up. If it’s a greenback, you’ll definitely stop to stuff it in your wallet.

When it’s a $50 dollar bill, you might even chase it down a windy alley!

Many millions of dollars in lost deductions happen every year, because those small on-the-go expenses are a pain to record. The two that prove the most onerous are deductions for meals and mileage. It’s tedious to go through a stack of wispy slips of paper. Most of us stuff them in our pocket and go our merry way.

But we might not be so merry if we stopped to add up all those lost deductions. There are hundreds and hundreds of dollars at stake, all going down the drain for lack of a receipt. (It’s funny how the IRS doesn’t take us at our word, don’t you think?)

Drive a few miles on a business errand, fail to record the mileage, and you’ve lost money. Picture yourself driving down the highway throwing dollars behind you at a prodigious rate.

Why pitch money out the window? But that’s what you’re doing everyday when you drive a vehicle to attend a meeting with a client or stop by for a meeting with other business owners at a cafe without keeping track. Let’s say you’re driving around 20 miles each weekday on average for business purposes. Those unrecorded mileage deductions add up fast. At the rate of 57.5 cents per mile for business miles driven, you’re losing out on almost three grand in business-mileage tax deductions should you fail to keep a daily log.

It’s a slow bleed that drains your cash reserves, but the solution is easy. Track those mileage and small business deductions with the flick of the wrist. Swipe a smart card and you’re on your way!

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