Auto Related Record Keeping

Your automobile may provide you with several tax deductions that may lower your income tax. As with all deductions, it's important to maintain accurate records of your expenses.

You need to record all of the miles incurred for business purposes, dates of business use, destinations and business purpose.

Record odometer readings at the beginning and end of the year to determine the total miles for the year for all uses. Tip: Keep a logbook in your vehicle's glove box for recording the mileage. You'll be able to easily calculate your mileage at the end of the year. (We have a supply of mileage record books - stop by our office and pick one up!)

The important aspect is to make sure you maintain accurate records. The IRS may disallow a deduction for mileage if you are unable to substantiate your deduction.  Also - If you use the standard milage rate, you can not use your actual expenses.

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