IRS standard business mileage rate deduction for 2008 is a staggering 58.5¢ per mile.
If you drive an average of 20,000 business miles per year, your deduction is about $10,100.
In order to utilize the standard business mileage rate deduction, the IRS requires mileage records to substantiate the deduction.
"If you prepare a record in a computer memory device with the aid of a logging program, it is considered an adequate record." IRS Publication 463 - How to prove expenses.
"You cannot deduct amounts that you approximate or estimate." IRS Publication 463 - How to prove expenses.
An IRS compliant mileage log book consists of -
- Destination
- Miles Traveled
- Business Purpose
IRS Publication 463 - Table 6-2. Daily Business Mileage Log