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You have to drive for business anyway
but you can still control your expenses.
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Feel good in an IRS audit.
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Concentrate on YOUR business.
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ANSWER: You want to recuperate the money spent on traveling for business purposes.
ANSWER: Paying yourself feels a lot better than paying Uncle Sam.
ANSWER: It reduces the taxable income on your Schedule C.
ANSWER: Your business cannot survive without deducting miles.
ANSWER: Because $11,000 is a lot of money to leave on the table.
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 $11,700.
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
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