I receive a vehicle allowance from my employer. Do I need to keep a mileage log?
I am self-employed and drive my vehicle for business. Do I need to keep a mileage log?
What do I need to capture in a mileage log?
Is an automated mileage log acceptable by the tax authorities?
Can I use a paper log? And if so, why should I use MILO™?
Can I use an application on my smart phone (PDA) to collect mileage?
Can I use my GPS unit to log my trips? Why do I need MILO
Do I need to track all my vehicle expenses in addition to my mileage?

I receive a vehicle allowance from my employer. Do I need to keep a mileage log?
A vehicle used to conduct business activities is considered a business expense. If you are on a vehicle reimbursement plan with your employer, this reimbursement is considered a taxable benefit. Your employer is likely to deduct taxes on the vehicle allowance. To claim back the taxable portion of your vehicle allowance, you must keep a mileage log. Even if your employer does not withhold tax from the allowance, you must keep a mileage log to prove and substantiate the claim that you are driving for business purposes.

I am self-employed and drive my vehicle for business. Do I need to keep a mileage log?

If you use your vehicle to conduct business activities, the business use (not personal use) of the vehicle is considered a business expense. If your company does not reimburse you, you can claim the expense on your personal tax return. To substantiate the claim, Tax agencies require that you keep a mileage log.

What do I need to capture in a mileage log?

A mileage log should include ALL your business related trips. Each trip should contain: the distance traveled, the location of the destination, and the business purpose of the trip.

Is an automated mileage log acceptable by the tax authorities?

Yes. MILO™ tracks business trips in a fully tax–compliant manner.

Can I use a paper log? And if so, why should I use MILO™?

Using a paper log or other manual process ia an acceptable way of keeping a mileage log. But it’s challenging is to keep a complete and accurate log. You need to remember to log each trip. This is tedious and requires consistent attention to detail. Most drivers find this is very hard to do and as a result, most drivers give up on keeping a manual mileage log.

MILO™ compiles your drip destinations and distances as you drive – with no effort or intervention on your part. In addition, when you upload your MILO™ data, it automatically correlates your stops and generates the business purpose of your trips from your MS Outlook calendar.

Can I use an application on my smart phone (PDA) to collect mileage? And if so, what is the advantage of MILO™?

Keep in mind that using a smart phone application is similar to keeping a manual log. You must remember to record the data of each trip. The device will export to a file, but you must then enter the name of the destination and the purpose of each trip. It requires extensive operator input. You have to launch the application each time. Most drivers find this solution cumbersome.

MILO™ compiles your trip destinations and distances as you drive – with no effort or intervention on your part. In addition, when you upload your MILO™ data, it automatically correlates your stops and generates the business purpose of your trips from your MS Outlook calendar.

Can I use my GPS unit to log my trips? Why do I need MILO™?

As long as your GPS unit is turned on, it will track all your trips. Some provide a service that allows you to download your data, and manually select the business trips and calculate the business miles. You must then manually associate contacts with a business address, and enter the purpose of the trip. It still requires time-consuming manual input. Days or weeks later, most people find it hard to remember the purpose of their business stops.

MILO™ compiles your trip destinations and distances as you drive – with no effort or intervention on your part. In addition, when you upload your MILO™ data, it automatically correlates your stops and generates the business purpose of your trips from your MS Outlook calendar.

About Tracking Vehicle Expenses

Do I need to track all my vehicle expenses in addition to my mileage?

Most people who claim business mileage as a tax deduction, get a better deduction by using the tax agency’s posted allowable rate – especially if they drive a significant distance for business each month. In this case there is no need to track all vehicle expenses.

Some people prefer to track claim their actual vehicle expenses including: all their mileage for business trips, total mileage for the year, all their vehicle expenses, gas, maintenance, vehicle annual depreciation, licensing and insurance. And then at the end of the year, they have the choice of using the per mile rate or the business use percentage of the real cost of operating the vehicle.

For example, if you have an expensive car but you drive only 3000 miles, using your actual costs is better for you. If you have an expensive car and drive 12,000 miles for business, you are better off using the mileage rate.

The vast majority of drivers need only track their business miles and claim the per mile rate. Even if you track your actual vehicle expenses, you need a mileage log to determine the percentage of business use.

What are my mileage logging options?

Do nothing and hope you are not audited by your tax agency.

Keep a paper log and rely on your own ability to consistently record every trip.

Use a smart phone application and rely on your input.

Use a smart phone with a GPS-enabled application and rely on your own input. Use valuable battery power

Use an in-vehicle wireless GPS tracker for partial reporting

Use MILO™ to automatically provide complete and tax compliant reports