Mileage can be a valuable deduction—but only if it’s properly documented. Dr. Friday explains what a valid mileage log must include.
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.
Tracking miles. So I tell people all the time—you’ve got to have miles. If you’re in a business, you’re self-employed, you use your vehicle, miles are big—70 cents a mile adds up pretty quick.
But you can’t just come in and say, “I did 30,000 miles. I did 20,000.” For one, what’s the odds of you doing a full, even number of miles? Two, you need a log.
If you are ever audited, the IRS specifically asks for a log. It’s a specific log: Who did you go see? How far was it from your office? What was the purpose of the meeting? All these different details.
If you don’t have that, they can disallow those miles—and that can be tens of thousands of dollars out of your pocket just for not keeping the proper paperwork.
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