To claim a deduction for transportation expenses related to business, you must be able to provide the IRS with the exact log of every mile you traveled during the year.
At the bare minimum, the IRS will want to see the following information for every single trip you claim.
- DATE of the trip
- THE PURPOSE OF THE TRIP This should explain what you were doing at the location (eg. “Showing a property”).
- EXACT MILEAGE driven.
- TRIP DESTINATION The name or address of where you went. This should be as specific as possible (You can’t say “downtown” or “Hollywood”).
In the event of an audit, the IRS will request a copy of your mileage log to verify each of your deductions. If you cannot supply this information, the IRS will require you to submit an amended tax return and possibly fine you.
See how much the IRS can fine you for not having a mileage log.
There are a lot of automatic mileage tracking products available that can help you with your mileage log. We highly recommend The Mileage Ace because it only costs $0.49/day and it is America’s most accurate mileage tracker.
[…] The biggest advantage to choosing the standard mileage deduction? It is the simplest method to use: simply maintain a detailed mileage log which meets the IRS requirements. […]