Keeping IRS Mileage Records - Dude, It’s Only for 90 Days
Most MLM distributors don’t claim as many tax-deductible business expenses as they should or could. I see this all the time, and there is only one thing that keeps them from claiming their maximum business expenses: laziness.
I know, the IRS is Big Brother and everyone hates to deal with them. But in recent years the IRS has actually changed a lot of the tax regulations so that it is much easier for the small business owner to get more tax breaks than ever. The major problem is that you have to document every expense you want to claim, and that’s where most MLM business builders fall flat on their face.
Mileage Deductions - What the IRS Wants in 90 Day Your Records
Documentation is tedious, boring, and definitely not a favorite activity of any small business owner. The good news is that when it comes to your mileage deductions for your MLM business, you only have to keep a mileage log for 90 days. That’s it.
Just pick a period of 90 consecutive days during the year that is “typical” of your business driving habits. Then keep a mileage log. On your mileage log, you need to track the following information:
- date
- business for which the miles were driven (if you have multiple businesses)
- destination
- primary purpose of the trip
- beginning odometer reading
- ending odometer reading
- business miles driven
- personal miles driven
That doesn’t sound too difficult, right? The good news is that if you ever get audited, the IRS will be happy with your 90 day record as long as you have precise and consistent. The IRS is understaffed and overworked, and if they see a precise 90-day mileage log, they won’t spend much time questioning it. The log shows you have a working knowledge of the tax law and that you have made an excellent effort to document your expenses.
For more on IRS mileage rules, read my article on Mileage Deduction - IRS Rules for Recordkeeping.
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Photo credit: Miles and miles
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