Tax deduction for auto expenses

A recent Tax Court case reminds us to keep records to support any tax deductions for auto expenses. In the case, the court recognized that the taxpayer, a traveling salesperson, did conduct business travel. But the court denied a deduction because the taxpayer didn't have credible substantiation for the mileage. The lesson learned? Keep a record of business mileage. Find a system that works for you. If you have an appointment book, consider writing down any mileage to get there and back. Even though tracking mileage is an inconvenience now, it will save you stress and tax dollars in an audit. For more information on the case, visit the article from the Journal of Accountancy. For more information on travel, meals and entertainment expenses, visit the FAQ on our website at: http://ty-llp.com/about_faq.html.