Business Mileage Documentation Alert!
September 24th, 2023 at 7:41 AM
The tax law contains no reasonableness test for mileage.
In fact, tax code Section 274 specifically discards the reasonableness standard and puts in its place strict substantiation rules.
I recommend that you keep a mileage log for at least three consecutive months to prove your business-miles percentage. The three-month log concept comes from the IRS sample method described in its regulations. You then apply this three-month percentage to either
- your actual car expenses for the year, or
- your mileage for the year (if you deduct your vehicle using IRS mileage rates).
My message here is simple: keep a mileage log. You can use an app for this.
Mark S. Fineberg, CPA