Business Mileage Log With Expenses (Page 2 of 3) in pdf

Income:

 Income includes cash, awards (car, trips, jewelry, etc) and commissions.

 Documents showing income include 1099 commission statements, expense reimbursements,

etc.

 It is advisable to open a separate checking account and credit card for your MK business. It

simplifies record keeping and it makes your records easier to reconcile and audit.

Inventory:

 Keep receipts for all inventory purchases

 Record inventory purchases at cost, not retail. A physical count of inventory should be taken

on December 31

to ensure an accurate accounting.

 Separate inventory into the following categories

o Items purchased for personal use

o Items purchased and used as demo

o Items purchased and used as promotional items (auction baskets, etc.)

o Spoiled, damaged and expired items that cannot be sold or sent back for replacement.

Document how the item became unusable. It may be prudent to take and keep photos

of such items for your records.

Expenses:

 Keep receipts to document all expenses

 Business meals & Entertainment

o Please note that you need to document the business purpose, as well as attendees,

location, date, and cost. Legitimate expenses are 50% deductible.

 Business Mileage

o There are two methods you can use to claim mileage – standard or actual expenses.

Both methods require you to keep detailed records and to document your odometer

reading at the beginning of the year.

 Standard Mileage – This is the easier and simpler method to use. Enter your

miles driven on a mileage tracker form (can download from RCS site).

 Actual Expenses – Consider this method if you use your car exclusively for MK

business or you use your car a lot for MK business. Please note that if you

won a MK car, this is the only method you can use.

 If your vehicle is used for both personal & business, you need to

determine the percentage of use for both. Keeping track of your MK

miles is probably the easiest way to do this.

 Keep receipts for expenses such as: repairs, gas, oil, etc.

 Telephone, Internet, and Other Communications

o Separate Business Line – Keep copies of your monthly bills

o Home Phone – The cost of basic service is NOT deductible. However, the cost of

options such as 3-way calling may be deductible. Keep a log of all calls made and the

Business Mileage Log With Expenses Page 2