Saturday, January 10, 2009

Keep Good Mileage Records

If you are in business for yourself (self-employed) and you drive a lot with your business then you may deduct the mileage used for business purposes. The most important thing though is to keep good mileage records. Currently the mileage deduction is right at 58.5 cents per mile. If you drive a lot this can add up to a sizeable deduction come tax time.

The rule is you can deduct mileage or you can claim all other automobile expenses such as tires, gas, oil changes, etc. However, once you choose one of these methods for tax purposes you cannot change it. Generally, the mileage deduction works best. All that is needed is some form of a logbook indicating the miles driven and the date. This should be enough to properly document your mileage and would serve appropriately in the event you were audited, in which case it would not be a bad idea to get professional representation.

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