What Is the Process to Create a Mileage Log for Taxes?


Quick Answer

The process for creating a mileage log for taxes is to write down the odometer reading before and after a business trip and to note the business purpose of each trip. It's also important to include the date and the places driven to for business.

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Full Answer

The IRS requires accurate record keeping for individuals and businesses who plan to use this deduction when filing taxes. If records are poorly kept or mileage deductions for aren't justified, the IRS may deny a mileage claim.

For those who plan to claim this deduction on their tax returns it is important to keep records at the time of the trip, rather waiting until the end of the year to recall the details of every business trip, such as when it occurred and what the odometer read.

The IRS also requires mileage records for non-business trips, such commutes and other personal use of a vehicle.

Individuals can use conventional mileage log worksheets to record business miles, or they may use various mileage tracker applications available on smart phones. Mileage log software, such as MileageWIZ or Mileage Track, requires a purchase of the software and comes with additional features, such as IRS mileage rates and mileage log review.

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