How to Keep Vehicle Mileage Tax Records

Series Summary

IRS! Most people see those three letters and immediately go into panic mode. Everything about income taxes seems to be a hassle. People that don't know what they are doing may find themselves in a world of trouble. How do they learn what tax deductions they are eligible for? What do they do if they get a letter from the IRS? Are they going to have to file a tax extension? Do they have to pay tax penalties? There are so many unanswered questions that loom in the gray world of the Internal Revenue Service. If people are worried about tax deductions, Kristen Brand describes the process in detail and gives them tips for avoiding audits and making smart and safe deductions when filing taxes. So, don't let April 15th catch you off guard. In this series of tax filing videos, an accounting specialist will tell you several ways to avoid a tax audit. Learn what the IRS looks for when deciding who to audit. Find out tips for reporting rental income and various other deductions. Should one expect an audit if a company they hold shares in gets audited? Watch this free video series and find out how to claim gambling winnings and how to deduct donations as a write off on a tax return.

Video Transcript

"Do you drive your car for work? I know I've put a lot of miles on my car this year. Do you wonder how to keep a mileage log for taxable miles? My name is Kristen Brand and I'm going to talk to you about how to keep a mileage log for your vehicle. First off you've got to determine what kind of person you really are. Are you the kind of person that does better with paper or with a computer? I know that I sometimes do better with paper, so one way to do that is to keep a little log book in your car where you can write the beginning mileage of your car everyday and then where you've gone and then also show the ending mileage. The reason you'll need to do this is because the IRS wants to know your total miles driven and then also the percentage of that that are used for business so you actually need to track both. The other thing you can do is create an Excel spreadsheet to show the difference in those mileages as well. Sometimes I can go back and look at my calendar and actually figure out how far the driving distance was on my business miles and then keep track of it at a later point in time. The key to this is really keeping good documentation to be able to justify which percent of your car you use for business. I'm Kristen Brand and that's how to keep a vehicle mileage log."