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First… HAPPY NEW YEAR! This has been a year full of business collaborations and referrals. So many of you continue to enhance the scope and breadth of services I can provide referrals for. I hope I do the same.
Do your business owner friends a favor by forwarding this important memo to them.
If you are a business owner taking automobile expenses, then maintaining adequate mileage records is imperative.
Whether you take actual expenses or a deduction for business miles driven, the SAME mileage records must be kept and provided to the IRS under audit.
Let me refresh you as to what exact information the IRS will require in order to substantiate your business miles.
So what are the basic IRS rules?
NO ESTIMATES Allowed, Exact Mileage Only.
Each Trip Itemized, Business Reason Listed
Mileage Totaled Annually
Please read those items carefully. EXACT mileage. EACH trip itemized. TOTAL annual mileage.
You cannot use estimates, the IRS will reject that. (This means you, my real estate agent clients!)
Many people don’t realize that the mileage deduction verification starts with total miles driven for the year, not just business. How can we know that?
No, the answer is not your Jiffy Lube Oil Change receipts.
The best way to verify your total annual mileage is to take a picture of your odometer on January 1 every year. This way we have two date stamped images of the same odometer, which will give us grand total miles driven annually.
If you buy a new car during the year, take a picture the day you drive the car off the lot.
Be sure to save these images in three places. 1) On a local back up drive in your home of office, 2) in an online storage folder meant just for business items, 3) and email them to me so I can archive them for you on my server.
Remember, the moment you have a business or tax question is the moment you should be calling me.
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Please reach out to me without hesitation with any tax, business or
accounting question, and to schedule a consultation.
Tax Laws are complex.
It is very easy to make mistakes that can incur penalties.
Do you have a Tax, Accounting or Business Question?
Call Me Immediately. (732) 673-0510.
Is your CPA or Attorney
ignoring your Phone Calls and Emails?
Call Me Immediately. (732) 673-0510.
Remember,
“If We Aren’t Working For You, Then You Aren’t Working At Your Best”
Chris Whalen, CPA
(732) 673-0510
81 Oak Hill Road
Red Bank, NJ 07701
www.chriswhalencpa.com
Red Bank • Rumson • Colts Neck • Holmdel • Middletown • Lincroft • Brick • Toms River • Sea Bright • Deal • Little Silver • Long Branch • Asbury Park • Bradley Beach • Belmar • Brielle • Eatontown • Fair Haven • Farmingdale • Highlands • Atlantic Highlands • Howell • Locust • Monmouth Beach • Shrewsbury • Spring Lake • Tinton Falls • Monmouth County
#IncomeTax #irs #cpa #TaxReform #amnesty #taxrelief #potus
