Car mileage

[AccTaxMan]

Taxpayer is in a business that definitely requires the use of his car.

Fact: He did not keep a daily mileage record last year.

Fact: He goes to a few places regularly for his business.

I told him to go home, sit down, take a pen and a paper, and try to recollect his memory. Then he should write down as detailed as possible the location that he regularly went to in 2010, a good faith estimation of the number of trips to each location in 2010 and the number of miles each trip.

Based on the information, I will use the standard mileage to claim the car expense in his tax return.

Of course, I will explain to him since he does not have the daily mileage record, the car expense deduction might be disallowed during an audit.

Any problem with this approach? Please give your opinion.

[solomon]

If TP goes to just a few places, there is no need for a daily record. Somewhat analogous to a salesman with a regular route.

[DaveO]

I have reconstructed mileage records for an audit in this manner and have had it accepted.

[jimenright]

I agree with your approach

although I believe the IRS requires a contemperanious record.

Taxpayer is in a business that definitely requires the use of his car.

Fact: He did not keep a daily mileage record last year.

Fact: He goes to a few places regularly for his business.

I told him to go home, sit down, take a pen and a paper, and try to recollect his memory. Then he should write down as detailed as possible the location that he regularly went to in 2010, a good faith estimation of the number of trips to each location in 2010 and the number of miles each trip.

Based on the information, I will use the standard mileage to claim the car expense in his tax return.

Of course, I will explain to him since he does not have the daily mileage record, the car expense deduction might be disallowed during an audit.

Any problem with this approach? Please give your opinion.

[oceanlovin'ea]

2010 calendar

I give my clients a calendar and tell them to use the calendar to mark when they went places. From the paper notes he has made he could transfer to calendar.

If they made deposits at bank, bought supplies at certain stores, etc, they have receipts for those things. That would be proof they drove there.

You have to do a little hand holding and tell them they can do it. We can't do it for them. If they want the deduction, they will get it done.

Linda, EA