lead credits and the IRS

[goillini52]

Now, quit trying to show off by telling us you can use all that high- tech stuff..

That is high tech for me.

 

[PA Bill]

How about a pen and a spiral notebook?

That's exactly how I'm rolling now, Go. Like you, I'm finding a lot of this technology doesn't live up to the hype and is just another way for these assholes to tap into my wallet.

 

[HoosierLife]

I've been saying for years just a mileage tracker notebook in the car. Seems so much easier to me. I'm as techy as they come. But some stuff is just over the top.

 

[nfl72]

I didn't claim the lead credits as an expense. I was just thinking there might be a way to do it. When I got audited they wanted to see my mileage, my cell phone my lead expense, my hotel bills. My CPA thought my audit might be because I forgot to claim a 1099 for RNA, which caused them to look at the entire return. If your an on the road 1099 salesmen you have a lot of expense that makes your return stand out.

When it was all said and done I owed $1,200. I was happy to pay it.

 

[hockeyday]

I didn't claim the lead credits as an expense. I was just thinking there might be a way to do it. When I got audited they wanted to see my mileage, my cell phone my lead expense, my hotel bills. My CPA thought my audit might be because I forgot to claim a 1099 for RNA, which caused them to look at the entire return. If your an on the road 1099 salesmen you have a lot of expense that makes your return stand out.

When it was all said and done I owed $1,200. I was happy to pay it.

The problem is you make to much money working a day and a half each week, in some of the nicest areas of Michigan, go blue..

 

[OttoGraf]

I use an iPhone app called Mileage Expense Log (MEL).

Nothing fancy; I just put my ending mileage each day and it syncs with iCloud.

I didn't have much luck with the ones that wanted to do it automatically by GPS. They couldn't keep up with me I guess lol.

 

[dabulls]

You gotta keep a log. I tried the Mile IQ app but that was a waste of money as it failed to capture many trips.

I get that but couldn't you easily fudge the numbers in your log? How would the IRS call BS on that?

 

[LostDollar]

I think that keeping some oil change billings in the tax file would help to document overall vehicle mileage within time periods in the event some type of external support was needed for an audit. It would give a CPA some additional material to work with when sitting down with the IRS.

 

[LostDollar]

1st off, I can not take lead credits as cash. it must be used for leads. up to 50% of lead cost.

2ndly It makes sense if a company is paying 115% and giving lead credits for $7500 a year that have to be used exclusively on leads. One might rather get 120% and not be forced to spend their income on leads? Currently I have no option but to use them or lose them. If I am being forced to use part of my income on leads; is it truly disposable income?

I am just thinking out loud, I love the lead program and use them on every order, but it would be even more lucrative if I could write off the total cost of the lead order being paid in my name. It's like taking it on trade. I have a friend who is an electrician and he trades his work for other things all the time. They do it for a tax break. He actually belongs to a group where they agree to do it. He always has free coupons for food because he does work for restaurants in exchange for food. He also does it for advertising. He just had new carpeting put in a rental home that he did not have to pay for. In lieu of cash he did some wiring for them. When he is done he has a receipt for a $1,000 worth of paid for flooring and doesn't have to claim the income for the wiring he did.

Lets face it, in this business we have all kinds of expense that can be written off. I want to use everything I can, and then some! When in doubt isn't it better to use it and make the IRS find it? You never get anything unless you ask for it!



FTR I have never discussed the lead credit topic with by CPA but I intend to.

Does the insurance company include the amount of credit they give you for leads in the income amount they record on your 1099?

(And disposable income and taxable income may not be the same things.)

 

[TPAAgent]