【理财】节税小帮手 215 - VEHICLE EXPENSES | 佳财会计师事务所

You can deduct the vehicle expenses in your business by using your vehicle or a company vehicle as long as using it for a business purpose. The IRS requires you to keep proper mileage logs before claiming the expense. In general, your mileage logs should include:

• Records must be contemporaneous. Keep your daily record. The IRS has a way to find out if logs are produced a night before. Don’t risk because you might lose the entire deduction and face penalties and interest for underpaying your tax liability.

• Indicate the date and destination of each trip and why it is business-related.

• Indicate the start odometer and stop odometer readings for each trip.

Vehicle expense deduction is a popular item in the IRS audit because the IRS knows that the work is tedious and often ignored by the taxpayer. We suggest you to use the apps to minimize your time in such record keeping.