mileage log

[ILLMAS]

If a tax payer does not have a mileage log, but has records of oil changes that have the mileage recorded, would that be sufficient for the IRS if they are requesting proof? 

[Medlin Software, Dennis]

Cannot directly answer, but, since I used to not always note my travels well, but never forget my cell phone, I allowed Google to track me.  Maybe the client has allowed (or not disables) the "timeline" function in Google Maps...

[jklcpa]

38 minutes ago, ILLMAS said:

If a tax payer does not have a mileage log, but has records of oil changes that have the mileage recorded, would that be sufficient for the IRS if they are requesting proof? 

No, it would prove only the total mileage at that point in time and might be useful to show that he's driven a certain total miles, on average. Plus, how often are the oil changes, once or twice a year?  You still have to fill in the gaps between them with the other required data.

[easytax]

Take a look at this app:  www.mileiq.com   /// sponsor from a tax update webinar at CPAacademy.com yesterday.  You do need to buy app but it looks like an easy operation. By the way, FREE to tax preparers and a code for 20% off to any of your clients that might like it.

From two audits in PA, journals with all relevant information were OK'd and expenses allowed ---- but they specifically stated to client that without ALL required information, they would have disallowed. States are looking for reasons to disallow, fed's probably the same  --- if they take time to take a look, they want a return for that time.   Dot all i's, cross all t's.

 

[Max W]

I think it is going to be on how lenient the auditor is.  I have had direct expenses accepted with only 3 or 4 odometer readings, from maintenance receipts, spread over a three year period.

With another audit, expenses were accepted, even though the odometers on both vehicles used for business were broken.  The client was a musician on tour most of the year and used a motor home. 

 

[SaraEA]

I have a client undergoing a line-by-line audit right now.  The auditor is not questioning the business miles (good thing--I don't think she has records) but only the total miles driven.  The gal had oil changes in January of the year under audit and again in January the following year, so that's what we're submitting.  She takes standard mileage, so the only difference the actual miles driven will affect is the percentage of property tax allotted to the Sch C.  It's an older car and the taxes aren't much.  Talk about nitpicking, when the elephant in the room is standing right there.

[JohnH]

Could they be planning an endgame?  Nitpicking the small stuff to wear you down, then shoot the elephant at the last minute?

[Edsel]

I have detected absolutely nothing in the original post which puts its arms around business mileage.

It is difficult for me to get my clients on board with the idea of "bottoms-up" calculation of mileage, as well as use of the mileage rate.

1. Too many times the client doesn't think in terms of "bottoms-up" addition of specific trips and associated mileage.  They love to present me with "I drove 25,000 miles and I think about 75% was for business."  If they can't present a decent bottoms up number of miles to deduct, I won't deduct anything.  To be honest, I'm not as meticulous with details per trip as the IRS dictates, but I do insist on addition of specific trip mileage, and allow multiple trips if the evidence warrants.
2. The struggle with the std mileage rate fails to appease clients who think huge expenditures justify whopping deductions.  Usually, I don't follow the siren song to taking actual expenses.  I explain that when they buy something else and the usage falls below 50% there is massive recoil of original cost.  They try to tell me they are going to drive their $70,000 honkin' new truck forever.  Truth of the matter is a very expensive truck is more of a showcase than business use.  Their "real" business vehicle is usually an older pickup truck or maybe even a car, but they still try to make me believe the $70,000 truck is driven to jobsites where it will run over roofing nails and bang its underside on construction ruts.

I may have been born at night, but not last night.  Me and Rita B.

[RitaB]

8 hours ago, Edsel said:

I may have been born at night, but not last night.  Me and Rita B.

That's my story and I'm sticking to it till the cows freeze over.

[ILLMAS]

9 hours ago, Edsel said:

I have detected absolutely nothing in the original post which puts its arms around business mileage.

It is difficult for me to get my clients on board with the idea of "bottoms-up" calculation of mileage, as well as use of the mileage rate.

1. Too many times the client doesn't think in terms of "bottoms-up" addition of specific trips and associated mileage.  They love to present me with "I drove 25,000 miles and I think about 75% was for business."  If they can't present a decent bottoms up number of miles to deduct, I won't deduct anything.  To be honest, I'm not as meticulous with details per trip as the IRS dictates, but I do insist on addition of specific trip mileage, and allow multiple trips if the evidence warrants.
2. The struggle with the std mileage rate fails to appease clients who think huge expenditures justify whopping deductions.  Usually, I don't follow the siren song to taking actual expenses.  I explain that when they buy something else and the usage falls below 50% there is massive recoil of original cost.  They try to tell me they are going to drive their $70,000 honkin' new truck forever.  Truth of the matter is a very expensive truck is more of a showcase than business use.  Their "real" business vehicle is usually an older pickup truck or maybe even a car, but they still try to make me believe the $70,000 truck is driven to jobsites where it will run over roofing nails and bang its underside on construction ruts.

I may have been born at night, but not last night.  Me and Rita B.

TP is a property manager, no vehicle is provided by employer, manages 15+ building with over 250 units has to drive back and forth to pick up keys from the office and is probably unhappy because he is on call after hours for emergencies.

[Catherine]

If the client has records of calls and a planner with meetings listed, that plus mileage from Google Maps or MapQuest or similar can serve as authentication of mileage claims.  It's not a specific logbook, but it is a log of activities and locations.  

[JohnH]

On 10/27/2017 at 3:21 AM, Edsel said:

I have detected absolutely nothing in the original post which puts its arms around business mileage.

It is difficult for me to get my clients on board with the idea of "bottoms-up" calculation of mileage, as well as use of the mileage rate.

1. Too many times the client doesn't think in terms of "bottoms-up" addition of specific trips and associated mileage.  They love to present me with "I drove 25,000 miles and I think about 75% was for business."  If they can't present a decent bottoms up number of miles to deduct, I won't deduct anything.  To be honest, I'm not as meticulous with details per trip as the IRS dictates, but I do insist on addition of specific trip mileage, and allow multiple trips if the evidence warrants.
2. The struggle with the std mileage rate fails to appease clients who think huge expenditures justify whopping deductions.  Usually, I don't follow the siren song to taking actual expenses.  I explain that when they buy something else and the usage falls below 50% there is massive recoil of original cost.  They try to tell me they are going to drive their $70,000 honkin' new truck forever.  Truth of the matter is a very expensive truck is more of a showcase than business use.  Their "real" business vehicle is usually an older pickup truck or maybe even a car, but they still try to make me believe the $70,000 truck is driven to jobsites where it will run over roofing nails and bang its underside on construction ruts.

I may have been born at night, but not last night.  Me and Rita B.

But that $70K truck is jacked up so high it can't bang its underside on anything, and the extra-huge tires are nail proof.  Plus, it has such a nice paint job that it always looks like it's in pristine condition even after being driven all over job sites - almost like it's never used for work.  That's why it cost so much in the first place.   

[Pacun]

Don't forget ordinary and necessary mileage. Also don't forget about the industry standards too.

I had an audit where the agent saw the van driven by a contractor. He saw the ladders and the equipment in the VAN and he said, your girlfriend will not board this VAN so it is 100% business and no logs were required because it was ordinary and necessary for this VAN to travel to work sites and the mileage we were claiming were within the industry standards.

After the auditor left my client said "this VAN has saved me and my girlfriend and lot of hotel money". I ignored the comment and changed the subject.

[JohnH]

If the criterion for business use is that one's significant other won't get in your vehicle, then I'm in great shape.  I can start deducting mileage on my car, because my wife absolutely refuses to ride in it.