Cpa/tax help (1 Viewer)

zgalbert

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OK, so i have an inhome business as an independent distributor with a network marketing company that i use my vehicle to drive to opportunity meetings, corporate events, 1 on 1 meetings with prospects, but i dont have a mileage log that ive kept, the only thing ive kept is all my gas receipts, what should i do? i go see a cpa this year for the frist time, i usually do my taxes on tax slayer, but since ive been involved with this business, im looking to get majority of my mileage/fuel tax deducted.

any advice would help

thank you

Zane
USCG
 

gwballin

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OK, so i have an inhome business as an independent distributor with a network marketing company that i use my vehicle to drive to opportunity meetings, corporate events, 1 on 1 meetings with prospects, but i dont have a mileage log that ive kept, the only thing ive kept is all my gas receipts, what should i do? i go see a cpa this year for the frist time, i usually do my taxes on tax slayer, but since ive been involved with this business, im looking to get majority of my mileage/fuel tax deducted.

any advice would help

thank you

Zane
USCG
So here's the deal, at the end of the day the IRS has the burden of proof of determining your income and you have the burden of proof of determing your deductions.

That said, without a log detailing your business miles the
IRS can disallow the deduction since you haven't met your burden. Now, that's only really an issue if your return is selected for exam.

If a tax professional prepares your return you can tell him/her what your mileage was or your best estimate (provide your receipts if they ask but I often would just take my client's word for it) and they'll do the calc to determine if the standard mileage rate or actually expenses will get you the best result. If they are doing their job they will ask if you can substantiate the expenses (mileage log) but they are your advocate not an auditor so they don't need to see it.

Remember that you're responsible for what's on your return an attest it is correct when you sign it so you'll be responsible for any interest/penalties, not the CPA. Therefore the question is are you willing to take a small risk to take the deduction you say you deserve but can't prove?
 

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