Audit-Proof Your Business Mileage
Forget about deducting your G-Wagen (yes, wagen) for a second: you need to be able to prove with documentation, the business-use of your vehicle whether you take actual expenses or mileage on your vehicle. And the magic-way we do this? With a mileage log.
So in practice - what is the IRS actually looking for with these logs? You’ll want to remember these four “D’s” for reference.
Distance - how far were you going?
Deets. Or details - where were you going and what were you doing?
Odometer - Beginning and ending mileage on your vehicle for the year
Drive-time that’s not business - (I’m stretching here) This would be total mileage between both personal and business use.
There are apps that can help you with this (MileIQ and certain versions of Quickbooks Online, just to name a few), or you can just track these trips in a spreadsheet. Regardless of how you do it, do it and do it routinely; business mileage is the easiest deduction to lose and one of the hardest to substantiate after the fact if you didn’t document well up front.
Probably not the G Wagen you’re thinking of, but certainly the G Wagen our founders are interested in.