In most situations, you can use either method. However, there are circumstances that will require that you use the Actual Expense method. Consult a tax professional, or the IRS for more information.

A list of relevant tax publications is available on our Web site at http://www.handshigh.com/html/irs.html, with links to the actual publications from the IRS Web site, so you can read them for yourself.

Other benefits
Recording you mileage may have other benefits as well. For example, Patty Van Fleet is a nurse medical services consultant, and was using Trip to help sort out her reimbursable and non-reimbursable mileage, when her car was stolen.

"I was leasing a car when it was stolen and burned. I didn't have gap insurance because my agent said I didn't need it. Well, when it was found destroyed, the insurance adjuster was a real jerk. He started discounting for wear and tear, and the fact that MOST rental cars exceed the agreed upon yearly mileage limit (15,000/year).

"But, Trip clearly showed we were not over on miles. He had no choice. Keeping receipts for oil changes, etc. also helped. I was quite pleased with the outcome. We came out $2,000 ahead on that car after we settled our claim."

Tracking mileage in foreign countries
Using your PalmPilot to track your mileage if you live outside of the U.S. may prove even more beneficial. Many countries have different deduction rates depending on the amount of time that a journey required, in addition to the length and purpose of the journey. Reporting both mileage and journey time can be very complicated. The latest version of Trip adds the ability to track time duration.

The final word
Check with your accountant to verify that the PalmPilot application you decide on will work, and that you are using it correctly for your specific purpose. Tax laws change, and specific situations may have special tracking requirements.

But, now that you have a PalmPilot, you can't let laziness be your excuse any more.

Shannon Pekary is president of Hands High Software and can be contacted by email at shannon@handshigh.com.