How to Fill Out a Log Book for Tax Purposes

Organize your deductions in a notebook for easier tax filing.

Tax season is a dreaded time for many taxpayers. One easy way to eliminate at least some of the confusion is to organize your tax information. There are many benefits to keeping a log book throughout the year of tax-deductible expenses. Whether you are listing business expenses or itemized deductions, a log book is an excellent way to keep track.

Instructions

1. Divide a log book into 12 sections. Use one section for each month of the year. Ideally, you should start tracking deductions and expenses at the beginning of the year, in January, but you can start with any month. Each section should have enough pages to fit as many entries as you think you will need. It is always better to have too many pages than not enough.

2. Divide each of the month sections of the log book into subsections. Use separate pages within each section for different types of deductions and expenses. For example, a small business owner may have subsections labeled for utilities, vehicle expenses and merchandise.

3. Keep a manila envelope with the log book to store receipts. Each time you write an expense or deduction in the log book, place the receipt in this envelope. This will keep your receipts neat and in order in case you need proof of an expense in the the event of an audit.

Tips & Warnings

• Keep a small notebook in your vehicle to keep track of mileage and gas while you are on the road. When you get back to your home or office, transfer the entries to your log book.

References

• A Grade Tax: Tax Tips