Do you keep a mileage log that can stand up to a careful IRS audit?
You’d better have one because, as we explained in an article we wrote last month, an accurate, well-documented mileage log can keep you out of big trouble.
Want to see how bad things can get if you fail to maintain one?
We’ll tell you what happened to poor Therone Johnson, when you read the full article titled Tax Tips: The Insurmountable Sin in an IRS Audit: A Sad and True Story.
Three ways our fact-filled article can help you:
- You’ll learn about a major mistake Mr. Johnson made. Microsoft Outlook is a fine product, but when Mr. Johnson used it as a mileage log, he failed to record the business purpose of his visits to his ranch (which he used for business purposes). This was one part of an omission that cost him dearly as you’ll learn when you read the full article.
- We’ll explain, in detail, what ran Mr. Johnson’s mileage log off the road. For starters, Mr. Johnson didn’t meet the substantiation requirements imposed by tax code Section 274. What’s more, he failed to meet the requirements needed for a Section 179 deduction. Sound confusing? We’ll make everything clear, in easy-to-understand language, when you read the full article.
- You’ll learn what Mr. Johnson’s incomplete and faulty mileage log wound up costing him. The failed mileage-log cost Mr. Johnson all of his car and truck deductions, (not only in “Year Three” when he purchased and expensed the pickup truck). Also gone were all his deductions for the depreciation of his prior vehicle—plus all gas, insurance, and repair deductions for a combined three years. Ouch! You’ll get the whole sad story when you read the full article.