Asked by
karn singh
in
Personal Finance & Tax
at
4:47 PM on July 06, 2009
Seema's Answer
Getting Started
Get a notebook and a pen with a pocket clip. Clip pen to notebook.
Designate a readily accessible spot in your vehicle for the notebook and pen.
Write in the notebook the odometer reading of your vehicle every January 1 ' or the odometer reading on the date you begin using the vehicle for business.
Label a file folder, "Vehicle Expenses," and write on the folder the current year.
Designate a handy place to keep the file folder. The glove compartment is a possible location.
Recording Mileage and Expenses
Write down the date, the number of miles driven and the business purpose for each business errand or trip, in one section of notebook.
Continue to add each trip to the list.
Write down all expenses paid for operating and maintaining the vehicle, in another section of notebook.
List the date, the amount paid and the type of expense such as gasoline, oil change, car insurance, car wash, repairs and auto club membership. This is optional, but you may be able to claim actual expenses if the deduction is greater than the standard mileage rate.
Save your receipts in the file folder.
Log parking fees incurred for business purposes and the dates paid, in a third section.
Save parking receipts in the file folder.
Log separately the dates, names of work-related classes taken and miles driven directly from your work location to class. If you attend class on a nonworkday, log mileage to and from class.
Note the round-trip commuting distance you travel from home to your place of business, if you are an employee or if you have a fixed work location away from your residence.
Keep records of any mileage or vehicle-expense reimbursements you may receive from your employer or clients.
Answered at
5:17 PM on July 06, 2009
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