Audtior willnot allow mileage log

[David1980]

The reason is that my odometer does not show tenths of a mile (0.10). It shows only miles. A trip to the post office, round trip, is .8 miles. If the odometer just changed, it won't change to the next mile by the time I get back. So I show 0 miles?

I would record the 0.8 miles. But even if they were to start requiring beginning and ending mileage for each trip, it would even out for those short trips. If all your trips were 0.8 miles, then on 80% of them you would expect the odometer to roll over and you would get 1 mile instead of 0.8 miles. Giving you an extra 0.2 miles. For the other 20% you would get 0 miles.

So 5 trips would be 1 mile * 80% = 4 miles + 0 miles. And if you kept records by 0.8 each trip, it's 0.8 * 5 = 4 miles.

[ChEAr$]

In keeping a vehicle mileage log, is it necessary to show the odometer start/end reading or can you use the trip meter?

The reason is that my odometer does not show tenths of a mile (0.10). It shows only miles. A trip to the post office, round trip, is .8 miles. If the odometer just changed, it won't change to the next mile by the time I get back. So I show 0 miles?

Also, sometimes I forget to write down the start/end readings. But it is always 0.8 miles to the post office, 4.8 miles to the bank, .7 miles to a specific client. If I log where I went, can I just use the standard miles on my log?

Nope. not necessary to record beginning and ending mileage, this per IRS. But don't ask me where I put that! (lol) We do however need to note odometer reading every Jan 1st,
beginning of the day.

What I use is a simple database with desktop icon to get to it quicky. It's a three column
affair for date, mileage (rounded) and destination (e.g. bank, client1,client2, Charleston, SC; Dillard, GA, etc etc.

Yours might bear one for Noo Yawk City and return.

[Zee]

Here's a link to a string on another website on this subject, I'd suggest you read the second response carefully (It's very well written):

http://www.accounting-and-bookkeeping-tips.com/accounting-forum/viewtopic.php?p=13041&sid=78c790541ade2e375a00a134d2fd0d6f

On the second note (as already recommended), I would ask to review the situation with the auditor's manager, and if that doesn't work file an appeal. Unless there's a lot of money involved, it will most likely be settled at the Appeals level.

[Jiggers]

Frightening, isn't it!

Here's a link to a string on another website on this subject, I'd suggest you read the second response carefully (It's very well written):

http://www.accounting-and-bookkeeping-tips.com/accounting-forum/viewtopic.php?p=13041&sid=78c790541ade2e375a00a134d2fd0d6f

On the second note (as already recommended), I would ask to review the situation with the auditor's manager, and if that doesn't work file an appeal. Unless there's a lot of money involved, it will most likely be settled at the Appeals level.

If addresses of each contact on a sales route has to be entered each day, you have got a problem.

If addresses of the bank, post office, Wal-Mart, Client 1, Client 2, etc. have to be entered on the log each day, I have a problem!!!!!

[JG EA]

Of course we could forestall the situation and take a video camera along and record the route, show the front of each business we go into and interview the client/other business person. We could have them provide us with their SS#, DOB, and of course the city in which they were born. Then we could decribe in detail exactly what the business purpose of the meeting was or even better record the whole thing.

I think this wouldn't be asking too much, after all if we want the deduction then we should comply with every request the auditor makes no matter how unreasonable. Just because they want details - that shouldn't surprise us. After all it is reasonable that they require sufficient information in order to make a truly wise decision in our case. They may add a few rules along the way, but that's just because we have provided so much voluntary information to show them how honest we are. And after all, we have nothing to hide.

[kthurman]

No problems in CA

I recently went through an audit and my client simply printed out his Outlook calendar and penciled in how many miles roundtrip for each entry. They took it without any problem. Mileage is usually such a small deduction in the big picture that I think most auditors spend their time on big ticket issues.

[Kram BergGold]

Beginning and ending mileage

Use oil change receipts or other car repair receipts to document beginning and ending mileage for the year.

[Black Bart]

Oil change invoices

Use oil change receipts or other car repair receipts to document beginning and ending mileage for the year.

I also tell my clients this, but it's amazing how many won't do it. One of my clients has astronomical mileage -- many trucks on the road simultaneously. I told him SMR saves $10K per year and to get invoices every 12-31. His response? "Half won't need an oil change then and I'm not spending $25 per truck for nothing." He makes enough to be tempting audit-bait and just wait, he'll eventually be cryin' the blues over not spendin' that little dab.

Auditor are like Goldilocks' soup -- some too hot, too cold, just right. I once got a field agent who knew as much about taxes as our Bees Knees or NYEA (very nice guy, too -- smarter usually means nicer). Conversely, I drew an office auditor who did not know that commuting mileage is non-deductible (talk about divine intervention -- my client was fixin' to be slaughtered).

As far Barb's hard-nosed auditor, I agree with the others -- take it up with the supervisor. While I've had several clients audited, I've never been to Appeals so don't have any tips on that.

What about that Cohan rule -- would it apply in this case?.

[Davc]

What about that Cohan rule -- would it apply in this case?.

Statutorily not applicable to travel, entertainment and gift expenditures.

[fliszt]

I personally

do not write down start/stop odometer readings. There are a half dozen places I go to for business. Originally I did the odometer reading and wrote it down. Now I simply write in my appointment book (on bottom of page) where I went the the total mileage (which I have from years past). If I go somewhere new, I will press a button on the car's dash and record the mileage which then is transferred to my appointment book page. I make all the mileage entries in colored ink. Then at year end I simply start on page 1 and add the total miles thru page 53). If I'm ever audited again, I'll stick to my method of recording. If the auditor doesn't like it, then there is the appeals route.
Larry

[OtisMozzetti]

...
If I go somewhere new, I will press a button on the car's dash and record the mileage which then is transferred to my appointment book page.
...
If I'm ever audited again, I'll stick to my method of recording. If the auditor doesn't like it, then there is the appeals route.
Larry

I don't mean to argue that cumulative odometer readings are actually required, but let me comment. Even my vehicles have "a button on the car's dash" (a trip odometer), which calculates trip mileage down to the tenth of a mile.

The other observation, merely a stated fact not any argument I'm making, is that I saw a Tax Court decision along about June 2009, dealing with a real estate agent in Miami who had the electronic (mileage) recordingkeeping system installed in his vehicle ("admittedly" a Hummer) get thrown out even though he kept additional records of the business purposes of his vehicle trips and of the other statutory requirements.

[AuditorTurnedGood]

I read this case too

("admittedly" a Hummer) get thrown out even though he kept additional records of the business purposes of his vehicle trips and of the other statutory requirements.

And the court's three big issues were that the "Hummer Log" as they called it, couldn't be printed from the car's system, and also did not keep track of seperate trips, business purpose, date, etc. The other issue was that the court determined the seperate documentation wasn't kept at or near the time of the mileage driven, so it lacked sufficient corraborative weight - taxpayer shot himself in the foot by claiming two different mileage numbers, neither of which tied to the log.

I know GM put these "business mileage" trackers in a bunch of it's trucks in the late 90's and early 2000's. It's essentially a fancy trip odometer.

[joanmcq]

[/QUOTE]
I know GM put these "business mileage" trackers in a bunch of it's trucks in the late 90's and early 2000's. It's essentially a fancy trip odometer.[/QUOTE]

I have a great app for my iPod called Trip Cubby that records starting, stopping, total miles & will even calculate the deduction for biz, medical, & charitable, plus the time entered. Since I do backups by emailing the log periodically to myself, I also have date stamped emails to prove it was done throughout the year. I am bad at recording purpose; ASWA means ASWA meeting, deposit at G1 will be a bank deposit, and my doctor's name will have to suffice for a doctor's appointment, although there are ample places to record more info. In fact, it even keeps 'frequent trips' where I only have to make sure the odometer readings are ok after choosing one. Love that thing!!!