Amazing Mileage Logger and Report Generator
August 7, 2008 – 2:48 pm
GPS-based Mileage Logger –
A few weeks ago I posted an entry called Make the Most of High Gas Prices about the recent IRS increase in the standard mileage deduction from 50.5 cents per mile to 58.5 cents. I pointed out that if you are in the 30% tax bracket, the new mileage deduction will generate 17.55 cents a mile (or $17.55 per 100 miles) in direct tax savings.
Today, that post received a comment from a company that makes an amazing GPS-based mileage logger and report generator. The Mileage Logger by Vulocity is a really great tool that automatically records the destination, miles traveled and business purpose of every trip. If you are self-employed, almost any trip you make can have a business purpose. This nifty tool provides all the documentation you need to track your business mileage and justify your mileage deductions to an IRS auditor.
Service Description (from the Mileage Logger web site)
GPS Automatic Mileage Logger — One-time charge of $199.95
This GPS enabled device acquires the start and end location automatically and also calculates the distance traveled; your records are transmitted via the cellular network (GSM) and are accessible with your personal login information on our secure website www.mileagelogger.com. Just plug the Mileage Logger with the provided car adapter and the device will take care of the rest.
Airtime Service And Mileage Data Access — $18.95 per month
Simply select your trips and classify them as business, charity, commute, medical or personal. In addition, you’ll be able to insert comments for the purpose of each trip. Each record contains easy to read addresses and precise maps to help you remember the purpose of the trip. You have the option to export the records to Excel; and if you like, you can also merge, delete or add records.
Locate On Demand Service — $1.00 per month
You can opt to purchase this feature and locate your vehicle at anytime, anywhere; this can help you locate your vehicle if it is stolen or locate lost loved ones.
Panic Alert Service — $1.00 per month
You can opt to purchase this feature and notify your closest friends or family with a text message when you are in an emergency by pressing the side panic button; the emergency text message will contain your name, latitude-longitude and physical address; this feature can be very helpful if you or your loved ones are in dangerous situation. Limited to 20 text messages per month.
View a Demo
 The web site features an animated demo that shows how you can easily edit, merge and delete online records, update comments, print reports and export to Excel.
Is It Worth the Cost?
The initial cost of the Mileage Logger unit is about $200. That is the equivalent of 1,140 business miles if you are in the 30% tax bracket or 1,709 business miles in the 20% tax bracket.
You also pay a monthly service fee of $21. That’s the equivalent of 120 business miles (30% tax bracket) or 179 business miles (20% tax bracket) every month.
So, how much do you drive for business? If you are in outside sales, you could easily drive 1,500 to 2,000 a month visiting prospects and customers. You could pay for the unit in the first month and buy a year’s worth of service in the next month.
Even capturing an additional 500 business miles a month would easily justify purchasing a Mileage Logger.
My friends and family know that I have a deep and abiding passion for Argentine tango. I dance tango five or six days a week for a total of about 20 hours a week. While most people are sitting on their couches watching TV in the evenings and weekends, I’m dancing Argentine tango, moving beautiful women through space in an intimate embrace. Every month, I drive over 1500 miles getting to and from private lessons, group classes, practicas and milongas (dance parties) throughout the San Francisco Bay Area.
Imagine, if I were a tango teacher, how much I could save in taxes if I wrote off my tango mileage! At a 30% tax bracket, I would save $263 a month and more than $3000 per year. The tax savings could pay for my next two trips to Buenos Aires!
James R. Ziegler, Ph.D.
