Mileage, the “Sampling Method”

If keeping an entire year of your mileage isn’t something you enjoy,  you may want to consider is the three-month sample for the mileage log.  Using this option, you maintain your mileage log for three months of the taxable year and then use the three-month log to substantiate the business use of your vehicle for[…]

More on Mileage

The IRS classifies all car usage into three categories:  business, commuting, and personal.  “Business  use” miles generally means travel between two business destinations.  Examples of trips that are deductible include: Travel from one client or customer to another Travel from your office to perform business tasks, like pick up the mail, make a deposit at[…]

Mileage Substantiation

I had a client tell me the other day, “I don’t keep very good mileage records, but I can if you think it’s important.”  Translation… “I don’t keep any mileage records” at least in my mind. Is it important to keep complete mileage records?  Of course it is, if you want to deduct the expenses[…]

Q & A: Standard Mileage or Actual Expenses?

The IRS allows two methods for taxpayers to use to account for their vehicle expenses, the standard mileage rate and actual cost of operating the vehicle.  Which method yields the highest deduction?  There is no clear answer, but let’s take a look at both methods. Standard Mileage The standard mileage rate is a simplified method[…]