Business Use of Auto
Many clients often ask “what information do I need if I want to deduct the business use of my auto?” In order to deduct your auto, it must be used for business; other than commuting. First and foremost, the IRS rules require the taxpayer to maintain a detailed travel log; indicating where he/she went, who he/she saw, and the mileage incurred. The taxpayer must also maintain records indicating the auto’s mileage at the beginning and end of the tax year. This provides the information necessary to calculate the business use percentage. The taxpayer must also maintain records of expenses incurred relating to the auto; such as, gas, insurance, repairs and maintenance, car washes, registration, and license costs. Finally, the taxpayer should keep the original documents from the purchase or lease.