What evidence do I need to support my vehicle expense deduction?
The best evidence for a business use vehicle deduction is a written record created while the business miles are driven. This can be a written log, spreadsheet, mileage tracking app, or something similar. The record should include miles traveled, destination, and business purpose.
For actual expenses, a mileage log helps establish business use percentage. Taxpayers should also keep receipts, invoices, etc. to show cost and prove which vehicle the expense was incurred. For depreciation they need to show the original cost of the vehicle, any improvements, and the date it was placed in service.
There must be evidence available, or the deduction is not allowed. Written evidence is the best evidence but is not absolutely necessary for claiming the deduction.
For actual expenses, a mileage log helps establish business use percentage. Taxpayers should also keep receipts, invoices, etc. to show cost and prove which vehicle the expense was incurred. For depreciation they need to show the original cost of the vehicle, any improvements, and the date it was placed in service.
There must be evidence available, or the deduction is not allowed. Written evidence is the best evidence but is not absolutely necessary for claiming the deduction.
