You Asked, We Answered: Answers to Clients’ Most Tax Common Questions

Do you have questions about taxes, business planning, strategic planning?  You are not alone.  McConnell & Jones’ tax team is here to help.

What are the IRS Mileage Log Requirements?

You can deduct the mileage you put on a personal vehicle for business purposes. These business drives include trips to meet clients, pick up supplies, drives between offices and more. Importantly, you can’t deduct your commute. According to the IRS, your mileage log must include a record of:

  • Your mileage
  • Dates of business trips
  • Places drove for business
  • Business purposes of trip

The IRS also wants to know the total number of miles you drove during the year for business, commuting, and personal driving other than commuting.

By far the best way to prove to the IRS how much you drove for business is to keep contemporaneous records. “Contemporaneous” means your records are created each day you drive for business, or soon thereafter. Many people use a mileage log, mileage logbook or something similar. Whatever you name it, it must provide documentation of the deduction you’re trying to make and again be kept in a contemporaneous manner!

 

How have State and Local Tax Dedications changed with Tax Reform? 

Deductions for state and local taxes are now limited to $10,000 per return ($5,000 for married taxpayers who file separately). State and local taxes include real property taxes, personal property taxes and state and local income taxes.

Additional information on the Tax Cut and Jobs Act and additional tax related services can be viewed at the following links:

Tax Cuts & Jobs Act | Individual Provisions

Tax Cuts & Jobs Act| Business Provisions

 


Dee Ann Creach serves as a tax planning and compliance expert for McConnell & Jones where she leads the preparation of hundreds of tax returns. With more than 30 years of experience, clients value the ability to tap into Dee Ann’s extensive experience in public accounting—which, in addition to income tax services, includes strategic family business, gift and charitable planning as well as financial consultative services. As tax manager, Dee Ann also oversees correspondence with the IRS and state governments, helping to save clients hundreds of thousands of dollars in unnecessary remittances. Connect with Deeann on LinkedIn.