Taxbot is a mobile app for android and iPhone users, but it’s so much more. It’s a complete package for completing your taxes faster and dramatically increasing deductions by capturing deductions you wouldn’t be able to document otherwise. Taxes may be a divisive topic. And they terrify some people to death.
Taxbot is available in the United States, but it can also be used in other countries. As a British taxpayer, I have taken use of it to obtain many more deductions than I would have otherwise. This article will show you how to do it.
Sandy Botkin and Jake Randall created Taxbot. I’ll go into more detail about who they are later in this essay.
So, how does Taxbot achieve its goal?
How Much Money Can Taxbot Save You?
It is entirely dependent on your line of business. Taxbot, on the other hand, saved me $45,106.11 in deductions that I would have otherwise missed in 2018: Yup, this is what Taxbot saved me in 2018!
Remember that if I had been in the 50% tax rate, this would have saved me around $20,100 in real money. Obviously, tax rates are a complex question, so this will depend on your own financial situation.
I understand that taxes aren’t everyone’s favourite topic… But, like death, it’s a reality that everyone must face. So, don’t you think anything that can make tax time a bit easier is worth learning more about?
Many people are afraid about IRS audits and tax restrictions. Later in this blog article, I’ll describe how Taxbot can give you peace of mind regarding your taxes (like it did for me).
However, it is your legitimate obligation to deduct as much as possible from your taxes, as long as the exclusions are genuine and valid. Taxbot assists you in recording and capturing deductions that would otherwise go unnoticed. And you’ll save money as a result.
Look, if mega-corporations such as Amazon and Exxon-Mobil pay no taxes, you should absolutely be entitled to all of the tax incentives that the law allows. Isn’t that insane?
Webinar with Taxbot
There’s a mileage/deductions section that focuses on claiming business travels and expenses as valid company expenses, and an accounting section where you can quickly produce year-end books for your accountant.
There are also some optional films in which Sandy Botkin, a legal tax expert and co-founder of Taxbot, offers various strategies for reducing taxes for entrepreneurs and business owners. I watched the videos and learnt a lot, but you don’t need to get them to use Taxbot and have it start lowering your tax bill right away. Sandy Botkin, who used to work for the Internal Revenue Service, has also written a few books on tax tactics.
Let’s start with mileage deductions.
About Mileage Deductions
For several small business people (including those in Network Marketing or simply performing a side hustle), this could mean mowing lawns, managing real estate, doing some infrequent graphic design work on Fiverr, or managing someone’s Pinterest Marketing account – or anything! With your online invoicing software, you can bill for literally anything.
Automobile expenses are the most commonly overlooked deductible by small business owners.
The reason for this is that keeping track of your miles and calculating how much of your car payments, gas, and repairs and maintenance can be deducted is a pain in the neck.
Because of Taxbot, this will no longer be an issue for you.
So, after you give the Taxbot app permission to do so, it records when you start driving in a car (based on the speed it can tell if you are in a car.) It has shown to be pretty accurate for me. It drops a geographical pin from your beginning position (which is usually your home) and an end of journey pin when you stop for more than 5 minutes.
As a result, it calculates the number of miles (or kilometres in Canada) you’ve driven.
If the vacation is personal, you just swipe left. If you’re going on a business trip, swipe right. It also keeps track of how much of your trip is tax-deductible for your company. As a result, you won’t need to keep track of your starting and ending distance. All you have to do now is keep note of your year’s first Odometer reading.
SIDE NOTE: I began using the app in June 2017, therefore for my first year, I recorded my first mile on July 1st, recorded the mileage for the rest of the year, then had my accountant double it to account for the months I did not use the app from January to June. This is absolutely OK. You can keep track of as little as a three-month period during the year and estimate your annual mileage deductions from that.
Why Taxbot for Keeping Track of Travels?
- It is, first and foremost, automated.
- Second, it gets me wondering about how I can deduct a trip from my taxes.
- Third, If I were using a pen and paper notepad instead of Taxbot, I would never be able to do this consistently.
A Pro User’s Taxbot Suggestions
Now, the wonderful part is that you can combine journeys, which I frequently do for clarity and brevity. So, if I’m driving to the bank and withdraw a corporate check but also stop at the grocery shop across the street home, I’ll combine the two trips into one – from office to home.
I had to drive home nonetheless because my major business purpose was to go to the bank. However, because my supermarket excursion occurred on the same route as a business trip, it is now tax deductible.
As a result, my entire tripe has turned into a real, audit-proof, tax-deductible company expense. Every time I leave the house, this saves me money.
How Taxbot Can Assist You
Taxbot asks you to write down the information that the tax authorities will require. It will also question WHO you were seeing at the dinner and WHAT the objective of the meal is in the case of meals and/or entertainment expenses.
Feeds from the Taxbot and the Bank
Taxbot can also link to your banking feeds and pull all of your assets and liabilities into the computer, which you can then sort into IRS-approved categories. You can also create your own groups.
Cloud-based Accounting Software
You can also add any trip data that is missing from the web-based back office – for example, if your phone was switched off – simply enter the starting and finishing addresses by address and it will compute the mileage for you.
Estate Tracking Tool, Taxbot
Taxbot is a fantastic real estate tool as well. I wish I had known about it when I first started working as an executor.
You can easily manage your time, mileage, and any costs straight through the app, keeping everything separate, and preparing a statement for the authorities or your attorney.
Remember that Taxbot’s high rating is desirable, especially for a free app with a paid monthly subscription. The most of the 1 Star reviews are from customers who are upset that they have to pay to keep using the app. But believe me when I say it’s worth it!