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AUTOMATIC RECORDING FOR TAX DEDUCTIBLE MILES

IP.com Disclosure Number: IPCOM000176297D
Publication Date: 2008-Nov-11

Publishing Venue

The IP.com Prior Art Database

Abstract

A system device having software capabilities and components thereof to automatically record miles when a vehicle is driven to a destination, where mileage incurred on the vehicle is tax deductible. This system will enhance and speed up the manual process that exists today.

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Automatic Recording for Tax Deductible Miles

Background

    Every year people, small businesses, and larger corporations must file taxes to their government. As such, every year many people take advantage of claiming tax deductible expenses in order to reduce their gross taxable income. For example, most homeowners write off the interest in their mortgage as a tax deduction.

    One of the most claimed tax deductions are for business-related activities, namely travel. Travel is necessary to attend conferences, volunteer at charitable institutions, etc. Aside from hotel expenses, transportation expenses, such as parking fees, taxis, bus fares, tolls are accrued and can be claimed as a tax deductible expense.

    In addition, expenses like mileage incurred when a person uses his/her personal vehicle or while utilizing a business vehicle during a business-related or charitable event are also tax deductible. This taxable write off can be done as a deduction by mile. In this scenario a dollar amount, for example, 14 cents per mile is multiplied in totality by the total amount of miles accrued on a person¶s vehicle in relation to the business or charitable service for a given tax calendar year.

Summary of Problem

    Although many people plan to take mileage as a tax deduction, only a few persons actually log in the actual miles driven for tax deductible purposes since such recordkeeping skills requires consistency and discipline to record the miles driven. Additionally such records are normally kept on paper and are then transferred onto a

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computer spreadsheet. However, more often than not, an individual cannot provide evidence to support his/her deductions on a given tax form because the miles were mostly guessed. As a result, many users lose out on any deductions that they could have put on their tax form and lower their taxable income during tax season.

Overview of Innovation

    The innovation is a system and electronically based method to record driving mileage through electronic means to aid in record keeping for tax deductible driving activities. The innovation is a device installed in each car or relevant vehicle to record mileage driven at a given time interval. The device may be built into the car or as an external hardware component. Preferably, the device is connected to a GPS system to record location at a given time. This device allows for the user to designate points that are usually business related through the use of some visual display. The user would be asked to identify what times these destinations are usually traveled and the device will subsequently store such information. The device may be synchronized with a user¶s home computer or relevant mobile device through the use of physically connected wires, wireless transmission within close proximity or long range transmission through the use of rele...