The Internal Revenue Service or IRS accepts only business trips purposes on your business mileage deductions. The personal trips need to be deducted as they are not acceptable. A mileage log maker is required to verify if all the stated mileage deductions are accurate.
For calculation, you need to log the following details:
- Time and date of the drive for business purposes
- Starting point
- Destination or place of the drive
- The business purpose of the drive
- The total distance of the drive or odometer readings
There are some questions that are asked about the business mileage log deductions. You might come across some of the answers you are looking for.
- DO YOU STILL NEED A MILEAGE LOG EVEN YOUR BUSINESS CAR IS ONLY USE FOR BUSINESS PURPOSES?
Yes. There is no rule that you shouldn’t record your mileage log even if you use your car 100 percent for business. IRS will still require your complete mileage log record for the entire year stating the total miles you have driven.
- IS IT OKAY TO HAVE TWO OR MORE VEHICLES?
Yes. The IRS doesn’t have a problem whatever arrangement you have with your vehicles as long as your business trips and personal trips are well detailed. Two heads are better than one the same with driving two business cars is better than one.
For examples:
- If you have two vehicles, you can use the other car for 100 percent business trips and the other one for personal use.
- if you have three vehicles, the first car is for 100 percent for business driving, the second car is for 100 percent personal driving, and the third car is both used with business and personal driving, when calculating for business mileage deduction, only business trips should be included and you have to deduct the personal trips used.
- IS IT OKAY TO MAKE ONE MILEAGE LOG TO TWO VEHICLES EVENTHOUGH THEY ARE BOTH USED FOR BUSINESS TRIPS?
Oh no. No matter how seldom you use the other car for business trips or how often you use the other one, you have to record your business mileage with a mileage log separately. One mileage log record for each car to avoid confusion and inaccurate records.
- IS IT OKAY TO CLAIM 100 PERCENT BUSINESS USE FOR ONE CAR?
More possibility that the IRS will question your deduction. It doesn’t make sense because if on Schedule C you declare that you have no vehicle for personal driving then they won’t believe you that your car is only used for business trips. It will result in more interrogation.
- IS USING ELECTRONIC MILEAGE LOG ACCEPTED BY IRS?
Yes. If you are looking for the best one there is an online mileage log maker that is reliable and verified to meet the IRS log requirements. How it works and how it will protect you from IRS audit can start by reading the frequently asked questions on how you will get started, create logs, download, and print mileage log records, and account and billing information. You can watch the 38 seconds demoYouTube video on how to make mileage log faster and convenient.
