It’s not too late to record your year end mileage to get that tax deduction for 2016 and start your mileage record for 2017. Either estimate the Dec 31 mileage or use today’s mileage as your 2016 and and 2017 beginning. What is important is you write it down!!
Even if you are not a business owner but are an employee who doesn’t get reimbursed for mileage, this needs to be done.
When you file your taxes to claim this deduction, you will need to know both business mileage and personal mileage. Make sure you keep a log of your business mileage. (Total mileage is needed because we usually have to report percentage of miles driven that are business.) We offer pocket calendars which you can keep in your car for this purpose or there are a number of phone apps to help you keep these records.
If you claim a mileage deduction, you will certify on your tax return that you have records and they are written. (You may not be aware of this if your tax preparer just checks the certification boxes without comment). If you are audited and don’t have records, or your records are insufficient, you will lose the deduction. IRS wins most of these audits because of poor documentation on the taxpayer’s part.
So, right now, go check your mileage and write it down. If you are an AFS client, email it to us, we will put it in your file.
Use more than one car for business? Make sure you get mileage on both!
AFS – USE THE BEST FOR LESS