<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"> <html> <head> </head> <body bgcolor="#ffffff" text="#000000"> <div>---------------------------------------------- You're making it too complicated. Figure your mileage the same way you figure inventory. Write down the odometer reading on Jan 1 and subtract it from the reading on Dec. 31. You use your car for about 80% business and 20% personal use. That's the mileage you use. There is a question if you you can substantiate your mileage. The answer to to that is yes, because if and when the IRS ever audits you, show them your appointment book showing all your customers. Let them figure out how many miles you drove. (You can include you drove to Anaheim, or any other seminar). They have to prove you cheated they cannot make you prove you lied. That's called self incrimination. </div> Willem (Wim) Blees, RPT ------------------------------------------------ I'm going to have to respectfully disagree here. The IRS can, and does, disallow anything it chooses; they will make their own estimate and require you to prove that they are wrong. They can, and do, ignore the best of proof. This is not a civil action. They will not and are not required to figure anything out. The burden of proof is on the filer. In the example above, it is recommended that you apply a simple estimator, if you use your car 80% for business, just deduct 80% of your car expenses. In response, the IRS will simply ask you to justify (prove) that you used your auto 80% for business. For that, you will want a log. Even if you wind up going back and estimating distances, that will usually suffice and backing it up with an appointment calendar is recommended practice and should prevail. Before this launches a discussion of what the IRS will or should do let me tell you a little story - The issue of my business mileage came up as part of a brutal, adversarial, three year "economic reality" audit which ended up in court. When I refused to settle based on their arbitrary re-estimate, the IRS simply disallowed all my business deductions for the year and for good measure included the two years prior. I call this harassment, the IRS calls it recovery. During the audit that preceded this decision I offered my detailed log and correlated appointment book as evidence. (I keep impeccable records.) The IRS refused to accept it and said: "We aren't going to except that because you kept the records yourself. You could write anything down." Unbelievable? That's a quote ... I have it on tape. That the log and appointment book combination is the preferred method of justifying business use of a vehicle in IRS's own guidelines made no difference. IRS is ignorant of the law and tyrannically aggressive in its collections. And they pay no penalty for that. Their job is not fairness, legality or morality ... it is revenue collection. I beat them in court. For those of you who recognize the ruling - "no change." But, it still took me hundreds of hours and thousands of dollars to defend myself from this unwarranted government attack. Their tactics were so egregious that they were lectured by the judge. "He has answered all your questions - what is your case? Don't ever bring a case like this before me again!" So what? Good records are your best defense and will usually do the job. But don't kid yourself, the IRS will do any damn thing they please without penalty or any kind of constraint. Steve <pre class="moz-signature" cols="72">-- "By a continuing process of INFLATION governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens." John Maynard Keynes</pre> </body> </html>