Do any of you guys know of a free Mileage log that would be accepted by the IRS and what information needs to be entered on the log? How do you guys handle that part of the mystery shopping business?

There are little logbooks you can buy at an office supply store. You can also create one easily enough with a column for date, mileage out, mileage in, purpose of trip.

For my own purposes, I have incorporated the mileage into my shop sheet. I normally zero out the trip mileage as I leave the driveway, so on return I simply note the total miles. On my shop sheet I note which shops were done in the same route and the total miles. Virtually any systematic and contemporaneous record of mileage is acceptable.

I created my own listing (notebook) showing milage, date, job name, MSC and pay...all info. and keep that as my log keeping it in my car and inputting everytime I go out to do a job. My Accountant uses this, it is still readable after a year.....lol.

I have not done a good job of tracking my miles. I have created a log sheet on Excel for all my shops. I will probably take a day and use one of the mapping websites to figure out all my mileage. Thankfully, my shops are in clusters so it won't be too difficult.

I added a column to my Excel spreadsheet to sequentially number jobs as they are performed. That helps me group together the shops that were done in a single trip so I only need to note the mileage out, the mileage when I return and then just flag the shops that were included in that mileage. The sequence number also allows me to re-sort my page to group company jobs together to record shop payments and then sort it back to its original sequence.

I keep a very small spiral notebook in the car. Every time I return home (or at the close of day on a route) I note where I went and for what shop and the ending mileage. That is the beginning mileage for my next trip, so it's very easy. At the end of the year I compute total miles, then compute non-shopping miles, then subtract to get shopping miles. This year I need an extra computation because the IRS mileage rate changed mid-year.

The IRS is directed to accept any credible, written, contemporaneous record. So, daily recording is essential!



Edited 1 time(s). Last edit at 10/27/2011 07:05PM by walesmaven.

I got my mileage log book for $2.95 on a $3 reimbursement doing an office supply store shop. I sometimes spend extra time at retailers to be sure my required purchase is something I can actually use without going over the reimbursement amount.

It's unnecessary to incur any cost in keeping mileage records. Use your car's trip meter, from start to finish for the day's shops. Log it in whatever manner is comfortable for you, and keep it. For tax purposes, record shop miles in a manner that will easily allow you to determine the total miles for a year. If requested, you can verify your mileage log with shop collateral, i.e. receipts, business cards, etc.

Mert is right. Anthing that you label "Mileage" is an acceptable log, as long as you maintain it regularly.

I have an excel spread sheet that I use as both my calendar of shops and mileage log. I keep track of what company, starting and ending mileage for the days shops, what my fee is, what I spent, what they reimburse and any bonuses. I also have a column for when they pay and how much. I can easily keep track of mileage, payment coming in and who still owes me.

It also comes in handy of documenting what i "made" in a week when I report my weekly unemployment earnings.

As for mileage, keep the log for historical purposes but the IRS really only wants the total number of miles accrued for your business and the start and ending mileage for the car used during that year.

Of course if you are audited the more detail you can give the better.

Sure, on your Schedule C you list totals on all items, but IRS does expect you to have the documentation to back up your totals. And if you have a tax preparer, the chances are that they will be happiest if you bring them the totals rather than the backup documentation since ultimately you are responsible for what they put in your return and IRS will be looking to you for documentation of the numbers if there is an audit.

I use an app on my smart phone. In the drive way before heading out, I input my mileage. In the drive way once back home, I input my mileage. It does everything else for me and email's the information!

autumnicole Wrote:
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> Do any of you guys know of a free Mileage log that
> would be accepted by the IRS and what information
> needs to be entered on the log? How do you guys
> handle that part of the mystery shopping business?

Don't forget your internet access, your telephone, and any other legit resources that you use in shopping. Take every legit deduction!

Don / Las Vegas

Careful Strevel. The first land line telephone into the house is NEVER deductible. IRS assumes everyone has one of those. Documented long distance charges for shops done on that landline CAN be deducted. I do print out to pdf the use log for my cell phone to show that minutes used are ALL either phone shops (for which I was paid) or contact with MSPs. Since my phone shop revenue far exceeds the cost of my cell phone per month and I have the use documentation, I am comfortable taking the deduction.

Internet access is going to be tricky because it is up to the claimant to prove that it is for business use and the percentage it is used for business. That is one I would not touch with a 10' pole.

Folks are often tempted to claim an office in the home. Do this with great caution. IRS wants it to be a room that is closed off from the rest of the residence (so not a corner of your living room) and is used for no other function (i.e. guest room, family room, kids' playroom, storage room, etc.). If you are a renter you perhaps can get it to work and deduct a percentage of your total rent corresponding to the percentage of your space that room represents. You would then be able to deduct a percentage of your electric and/or heating bill. But do read the IRS guidelines carefully and take lots and lots of photos to document that the room is used for nothing but your business. If you own your home be aware that you will also be REQUIRED to depreciate that portion of your home as well. This has ramifications when you sell your home as your cost basis in the home is reduced over time by the depreciation.