A mileage log should include total mileage, trips and purpose, and actual expenses. The IRS requires this information to be in the mileage worksheet in order to avoid frauds in vehicle expense claims made for tax deductions.Continue Reading
To deduct expenses for business use of a vehicle, the owner needs to track the total mileage driven in a year. A yearly mileage log should begin with the mileage of the vehicle on January 1st. The mileage taken on the following January 1st provides the ending mileage entry for the year. For the total mileage, the appropriate division of business and personal use of the vehicle needs to be calculated.
The IRS also requires the owner to keep track of each business trip, including the starting and ending mileage, as well as the reason for the trip. This section can also include the destination and people the owner met there, as well as whether it was a business meeting or sales call.
The log has to include entries and receipts for all fuel purchased, tolls and parking fees, vehicle repair expenses, maintenance and tires. Depreciation expenses can be tracked by keeping a copy of the bill of sale from the original purchase.
The record-keeping system for the vehicle expenses can be as simple as a small notebook divided into columns. Computer-based applications are available that are designed specifically for vehicle record-keeping.Learn more about Careers