I just lost out on $129.00, that I could have been paid. Let me explain.
I rode my motorcycle down to San Diego with a couple of buddies. We went to the Easyriders Bike Show to look at choppers and peruse the vendors. It was intended to be pleasure.
But getting back home, I felt compelled to write about it on my motorcycle blog. I thought the bike show was less than exciting, and the cost of parking and entrance was way too expensive.
Because writing and publishing blogs is part of my business, I could have expensed the whole trip! But the thing is that I didn't bother to collect the receipts, mainly because it didn't dawn on me before hand that I'd be blogging about this trip. Here's what I could've done if I was smart enough to realize it ahead of time:
- Expensed my mileage (I don't have the exact figure, but my accountant said something like $0.40 per mile). I did about 200 miles round trip believe it or not. That's $80.00 I could write off of my corporate income!
- Expensed my gasoline. This is not covered in the mileage. Mileage is for wear and tear on the vehicle. I spent something like $15.00 total.
- Expensed my parking and entrance fee. That came out to $26.00.
- Expensed my meals. I had lunch on the way down to the show. It was something like $8.00 altogether.
Note that my business is an incorporated entity, which is why it would've paid me a check. If my business wasn't incorporated, but was something I operated as sole proprietorship, then obviously I wouldn't pay myself. Instead, I would deduct the $129.00 from my gross income, effectively lowering my tax liability.
Either way, it's an opportunity lost. Think of how much opportunity is lost each day simply by not remembering to collect receipts and expensing them. I admit I'm terrible at accounting stuff; I need to do better. But just think about all the opportunities there are to expense things. There's probably a lot of money to be had.