Maximizing Tax Deductions: The Importance of Mileage Logs for IRS Audits

Dr. Friday Tax Tips
Dr. Friday Tax Tips
Maximizing Tax Deductions: The Importance of Mileage Logs for IRS Audits
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In this episode of ‘Dr. Friday Tax Tips – One Minute Moment,’ Dr. Friday, President of Dr. Friday’s Tax and Financial Firm, emphasizes the critical importance of maintaining accurate mileage logs for tax returns. She highlights that mileage deductions are frequently scrutinized by the IRS during audits. Dr. Friday advises using reliable apps like Mileage IQ or similar software to track every drive, stop, and start, ensuring that each trip is categorized as personal or business. This practice is crucial for creating a robust and IRS-compliant mileage log, which is essential for anyone claiming mileage deductions on their tax returns.

Transcript

G’day, I’m Dr. Friday, President of Dr. Friday’s Tax and Financial firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

I’ve talked in the past and I’ll keep talking because you guys all know I love to talk. But in saying that one of the things you need to make sure if you’re taking miles off of your tax return you need to be using an app or a mileage log. It is one of the largest things that the IRS will audit. If they open up a tax return and they see miles no matter what you do they’re going to ask for your log. If you’re using something like mileage IQ or other mileage software that’s going to be your best bet. But make sure you’re maintaining it because at least my mileage IQ every time I drive, every time I stop, every time I start and I have my cell phone it does it. So make sure you label it personal business so you have an excellent log.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.