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A mileage log is a record of the miles you have driven for business purposes. It is necessary for accurate tracking and reporting of your business expenses, specifically for tax purposes. The IRS requires a detailed mileage log in order to claim deductions for business-related driving.
You can create your own mileage log using a simple spreadsheet or a template found online. However, it is important to ensure that it meets all IRS requirements for accurate record-keeping. Alternatively, you can purchase a pre-made mileage log from a office supply or stationery store.
Your mileage log should include the date of travel, the starting and ending locations, the purpose of the trip, and the total miles driven. It is also helpful to include any additional information such as tolls, parking fees, and other related expenses.
It is recommended to update your mileage log on a daily basis, or at the end of each business day. This ensures that all trips are accurately recorded and no important information is forgotten.
You can only deduct mileage for business purposes, such as travel to meetings, conferences, or client visits. Personal errands or commuting to and from work do not count as business-related mileage and cannot be deducted.