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Level 2

Recording owner's mileage

Hi,

 

I'm a sole proprietor and I'd like to enter my mileage into quickbooks as an expense.  However, I'm not necessary looking to write myself a check to reimburse my mileage (I'd rather leave the cash in the business).  All the topics I see for recording mileage include an actual reimbursement.  If I drove 1,000 miles away from the office for work in 2018, is there any reason why I can't just create an expense for $545 (1000 x 0.554)?  When I create this expense, am I the payee?  What are the correct account details for this type of transaction?

 

Thanks!

Solved
Best answer 01-01-2019

Accepted Solutions
Level 15

Re: Recording owner's mileage

mileage is not an expense in accounting.

It is a tax time deduction you can take, if and only if, you do not take the actual expenses of operating a company car.

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6 Comments
Level 15

Re: Recording owner's mileage

mileage is not an expense in accounting.

It is a tax time deduction you can take, if and only if, you do not take the actual expenses of operating a company car.

View solution in original post

Level 1

Re: Recording owner's mileage

Then how should a person enter it into quickbooks online?

Level 1

Re: Recording owner's mileage

How would you enter it into quickbooks if it is for tax deduction only?

Level 15

Re: Recording owner's mileage

You keep a Mileage Log. If that is used on the tax form that results in an Allowance, this is a "not real money" event. If you want to enter it into the bookkeeping, it becomes an immediate wash for the prior tax year. Example:

 

I make a Journal Entry dated Dec 31, 2018 to Debit Mileage Allowance Expense and Credit Owner Equity. On the very next date, Jan 1, 2019, I see that all expenses and income as Net Income, already part of equity in last year's balance sheet, rolled into Owner Equity for this new fiscal year. That means what I entered dated yesterday just offset itself, as both parts now are in Equity, as part of Retained Earnings. So, you don't need to bother to enter it into QB at all, or you can, but it only affects that Tax year reporting. It changes nothing for the later year.

Level 1

Re: Recording owner's mileage

I understand what you mean about deduction, but I'm a user that takes actual expenses.  How do I record mileage billed to a customer?  I have "auto mileage expense" - Debit; Credit???; Company receivable - Debit; reimbursement income - credit.  I can't think of what to put in that first credit.

Level 1

Re: Recording owner's mileage


@Rustler wrote:

mileage is not an expense in accounting.

It is a tax time deduction you can take, if and only if, you do not take the actual expenses of operating a company car.


Are tolls on my personal vehicle being used for a business trip an expense in accounting?

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