Documenting Your Business Auto Usage is Critical

November 7, 2017 by OSYB Staff

Small Business Profit Explosion underlines how you can appropriately document your business auto usage and help to avoid thousands of dollars in extra taxes and accountant fees, if you are audited.

Your auto business log should include:

• All vehicular expenses, including purchase price, vehicle improvements, lease payments, repair and maintenance, gas and other expenses.
• The total mileage on each business vehicle and a breakdown of the business, personal and commuting miles.
• The date of the business use and a brief description of the business purpose for each use and expense.

“Records should be maintained in an account book, diary, log, trip sheet or similar record near the time of usage [Brown, TC Summary Opinion 2005-155(2005]. Without a written record of business or investment mileage, a tax auditor will not allow the deduction.”

And always, consult with your tax professional for your customized needs.

Read more and find out how technology can help keep track of your business miles:  Failure to Properly Document Business Auto Use Will Cost You Big Time!