Failure to Keep Good Mileage Log Results in Lost Deduction

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MileageA couple who used their vehicles in their sole proprietorships found this out the hard way. Their logbooks were riddled with mistakes, questionable entries and other irregularities – so much so that the Tax Court was unable to rely on them. As a result, the Court upheld IRS’ disallowance of all mileage expenses for the vehicles, even though they were partially for business (Moore, TC Summ. Op. 2012-16)

Kiplinger Tax Letter March 2012

We covered auto substantiation rules in greater detail on our blog article ( This is an area that the IRS auditors are keying in on since it is usually a high dollar amount and very few business owners actually keep good mileage logs.

Don’t say I didn’t warn you!

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