Product Review: MileIQ Is a Hassle-free Way to Track Your Mileage Deductions
By Kelly J. Phelan, RET Content Editor
Posted by: RET Staff
Real estate agents drive an estimated 30,000 miles per year, according to the National Association of Realtors. That adds up to a lot of expenses in gas, maintenance, and insurance. Fortunately, IRS rules allow you to deduct those business related expenses at a rate of 54 cents per mile--or over $16,000 a year for the average agent!
While a deduction of that size makes a huge difference in your annual tax bill, the IRS requires that you keep a detailed record of business related drives in order to qualify for the deduction.
That's where MileIQ comes in. MileIQ is a mobile app that automatically logs all of your drives and keeps track of your potential mileage deductions. Now agents can say goodbye to the old pen-and-paper log and lean on their GPS-enabled smartphone to keep scrupulous records for them.
How It Works
MileIQ taps into your phone's location services capabilities--including GPS, Wi-Fi, and cell tower triangulation--to automatically track all of your drives. After a drive is completed, the app prompts you to classify the drive as either personal or business. This is done with a single gesture: swipe right to classify as business; swipe left to classify the drive as personal.
As you can see in the image above, the app will display the route of your drive on a map, start and end times, length of trip, and the potential dollar amount of the deduction. In addition to classifying your drive, you can optionally add notes (including parking and toll fees), select which car you drove, or delete the drive altogether.