Discussion:2004 audit regarding writing off car 100% bus.
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| {{ForumNewPost|UserID=Loanshark|Date=1 August 2006|Text=I am being audited for 2004. What IRS is questioning is the write off of my vehicle purchase price used for 100% business on my Schedule C. They want to see a log showing mileage for the year. I kept the mileage on my tripometer and not on a daily log, as all my mileage was for business. I thought what I could do to establish a log is to use my bank statements with gas charges to verify my driving every weekend to another city (approx 100 miles each way) where I did a lot of my business that year. Does any one have any suggestions has to what is allowable for proof of mileage? Also, they are asking for receipts for all of my schedule C writeoffs. I could only come up with approximately 50% of them, as when I redo a clients loan, we sometimes shred the old file for storage purposes and take out what is needed for the next refinance. (Not to smart, I've learned). With only 50% of receipts, will this give IRS the ability to go back in years to recoup the same write offs that I'm short receipts. Help please! }} | {{ForumNewPost|UserID=Loanshark|Date=1 August 2006|Text=I am being audited for 2004. What IRS is questioning is the write off of my vehicle purchase price used for 100% business on my Schedule C. They want to see a log showing mileage for the year. I kept the mileage on my tripometer and not on a daily log, as all my mileage was for business. I thought what I could do to establish a log is to use my bank statements with gas charges to verify my driving every weekend to another city (approx 100 miles each way) where I did a lot of my business that year. Does any one have any suggestions has to what is allowable for proof of mileage? Also, they are asking for receipts for all of my schedule C writeoffs. I could only come up with approximately 50% of them, as when I redo a clients loan, we sometimes shred the old file for storage purposes and take out what is needed for the next refinance. (Not to smart, I've learned). With only 50% of receipts, will this give IRS the ability to go back in years to recoup the same write offs that I'm short receipts. Help please! }} | ||
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| + | {{ForumReplyPost|UserID=MSTguy|Date=1 August 2006|Text=With regard to your lack of receipts - is it possible to use your bank statements for this as well? Do you have a separate bank account for your business? If you do, you should be able to get copies of cleared checks from which you can rebuild your expense totals - if you have done any kind of accounting, this should be easy. But if not, it could be very tedious work. Also, if you used credit cards, you might be able to provide evidence of these expenses as well by referencing credit card statements. Regarding your car, do you have a separate vehicle used for personal use? If so, that should make it easier to sustain the business auto write-offs.}} | ||
Revision as of 19:52, 1 August 2006
Discussion Forum Index --> Tax Questions --> 2004 audit regarding writing off car 100% bus.
| 1 August 2006 | |
| I am being audited for 2004. What IRS is questioning is the write off of my vehicle purchase price used for 100% business on my Schedule C. They want to see a log showing mileage for the year. I kept the mileage on my tripometer and not on a daily log, as all my mileage was for business. I thought what I could do to establish a log is to use my bank statements with gas charges to verify my driving every weekend to another city (approx 100 miles each way) where I did a lot of my business that year. Does any one have any suggestions has to what is allowable for proof of mileage? Also, they are asking for receipts for all of my schedule C writeoffs. I could only come up with approximately 50% of them, as when I redo a clients loan, we sometimes shred the old file for storage purposes and take out what is needed for the next refinance. (Not to smart, I've learned). With only 50% of receipts, will this give IRS the ability to go back in years to recoup the same write offs that I'm short receipts. Help please! | |
| 1 August 2006 | |
| With regard to your lack of receipts - is it possible to use your bank statements for this as well? Do you have a separate bank account for your business? If you do, you should be able to get copies of cleared checks from which you can rebuild your expense totals - if you have done any kind of accounting, this should be easy. But if not, it could be very tedious work. Also, if you used credit cards, you might be able to provide evidence of these expenses as well by referencing credit card statements. Regarding your car, do you have a separate vehicle used for personal use? If so, that should make it easier to sustain the business auto write-offs. | |
