Business Mileage needs to be recorded at the end of each day and needs to start after the first appointment. Detailed logs are necessary in case of an IRS audit. Mileage is reimbursed at $0.55 per mile so a small error can equal large penalties. Many clients in the Tampa area log over 20,000 business miles a year and this tends to be one of the top 5 deductions for Florida businesses. If you have any specific questions about mileage reimbursement please email or call a qualified CPA. CPA's are able to assist in making sure your mileage logs are accurate and set up for proper accounting.
Remember you can itemize or charge for miles but if you choose to itemize your car expense you can not later switch to miles you must itemize for the life of the automobile.
If you are having trouble with your mileage please remember to update it daily and keep detailed records. I often recommend checking with an accountant to make sure you are on the right track with your log. The government is very big on having detailed records and spending the time to make sure that all miles are logged after the first appointment. A lot of business will often have separate cars just to simply the deduction process. When the miles add up from year to year it can make sense to get a new vehicle if maintenance costs out weigh lower payments. A total cost analysis should be preformed to determine if miles or deductions should be used.
Audit Accountant CPA Call Today To Schedule a Free Consultation Judy Driscoll CPA Located at: 250 N. Belcher Road, Suite 100 Clearwater, FL 33765 Office 727-441-6829 Specializes in Business Audits, 401k Audits, and Financial Statement Reviews.