When the IRS begins an audit, the mileage log often creates the first impression of your Idaho business tax records. Whether you use the IRS mileage rate method or the actual expense method, you need a written record that proves your Idaho business percentage of use.
The IRS three-month sampling record is the preferred choice:
- With this method, you keep a mileage log for three months and then apply that three-month Idaho business percentage to either the miles you drove for the year (mileage method), or the expenses you incurred for the year (actual expense method).
The three months must be consecutive and must represent your driving pattern. Otherwise you must keep the mileage log for the entire year.
You can find very affordable apps that work with your smartphone, such as:
- Mileage Expense Log,
- Mile IQ,
- Trip Log.
These apps track where you go and where you stop, and that takes away a big part of the record-keeping hassle.
- Make sure you also add the Idaho business reason for the stops.