Friday, May 25, 2012

TAX COURT CASE REMINDS US OF THE IMORTANCE OF GOOD VEHICLE RECORDS

In order for mileage to be deductible you must have good "contemporaneous" records of your mileage. 

A couple who used their vehicles in their sole proprietorships had logbooks but they were riddled with mistakes, questionable entries and other irregularities.  The Tax Court was unable to rely on them and as a result, the Court upheld IRS’ disallowance of all mileage expenses for the vehicles, even though they were used partially for business (Moore, TC Summ. Op. 2012-16). They lost their deduction.

If you would like a listing of records that you need to make sure that you are following the IRS guidelines let us know and we will send you the information.  Contact Amanda at ahaumont@kopsaotte.com

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