How to Create a Mileage Log
If you are going to deduct mileage on vehicles you use for business purposes, you must keep accurate records. IRS Publication 463 details the correct way to record mileage and other expenses, so that you will not trigger an audit.
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Things You'll Need
- IRS Publication # 463: Travel, Entertainment, Gift and Car Expenses
- Microsoft Office Word 2007
Instructions
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Download IRS Publication #463: Travel, Entertainment, Gift and Car Expenses. Go to page 25, Chapter 5: Recordkeeping. Read pages 25 through 28. Click on the "Examples of Records," on page 28, Table 6-2 and Table 6-3. Choose one of the two formats, depending on how detailed your mileage log needs to be to accurately reflect your expenses. Table 6-2 is simpler, and is best for someone who only needs to record mileage and maintenance expenses. Table 6-3 is more detailed and includes common carrier travel, gifts, meals, tips and lodging.
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Download Microsoft Word 2007 if you do not already have it. You can use any other word-processing program of your choice, but the steps that follow may not conform exactly to your program. Adjust as needed.
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Click on the "Insert" tab along the top of your document. Click on the arrow under the "Table" icon and read the drop-down menu. Click on "Insert Table." This opens a window where you choose your columns and rows.
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Change the "Columns" number to 8 and make the rows number 32. This will allow you to make a table that resembles Table 6-2 from IRS Publication 463.
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Add column labels. Date, Destination, Purpose, Start, Stop, Total Miles This Trip, Type of Expense and Amount are listed in Table 6-2. You can substitute other headings, but you should keep at least the first six column labels as they appear.
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Click on the floppy disk icon or choose "Save As" from the drop-down menu that appears when you click on the Office button. Name your document "Mileage Log" and click the "Save" button.
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Click "Print." Make one copy any use a copy machine to create a pad of forms. Put the forms in a clipboard or folder, or use pre-drilled paper and put the forms in a three-ring binder. Check your car's trip meter before leaving each point and upon arrival at your next destination. Record your mileage and make any necessary notes in each column. Keep all pages for each month separated.
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Tips & Warnings
According to New York Times reporter Christopher Elliot, the IRS prefers paper and ink logs. He quotes former IRS auditor, William H. Rosenberg, who states, "The I.R.S. is still stuck in the good old days, looking for pen-and-ink logs..." Page 5 of IRS Publication #463 details what expenses can be deducted.
