If you use your motor vehicle for business, you may be able to take a deduction.  However, you will need to keep track of the total miles that you drove for the year, the number of business miles you traveled and the number of personal miles.  You also have the option to use actual expenses incurred for business.  Note, however, commuting to and from your job from your home is generally not deductible.  To keep track of your mileage, you may want to keep a log or ledger book in your car to record the mileage, the time and place attended, the business purpose and relationship. This area is a complicated area of the tax code.  Failure to follow the IRS code may result in a disallowance of deductions.  Please contact us regarding your specific situation.

Click here: Travel Expense Log for a 2008 travel expense report in excel format, with the 2008 standard mileage rate filled in for each month.  You should also document your odometer reading at the beginning and end of each year.  Have your vehicle serviced either at the end or beginning for each year when you prepare your vehicle for winter for the best documentation to support your vehicle's odometer reading.

These articles are intended to provide resources for the tax and accounting needs of small businesses and individuals. The information contained in this Website is intended to provide general information on matters of interest in the areas of tax and accounting and should not be acted upon in your specific situation without further details and/or professional assistance. Users are encouraged to contact us regarding specific situations.