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Tax Deductible Miles: Is It Worth the Risk?

Your name]In summary, the conversation discusses the tax implications of deducting mileage for a business trip. The speaker shares their experience of driving 678 miles for a show and recruiting, and then visiting their mom's for a fundraiser. They wonder if this could raise a red flag for an audit. Another consultant advises that as long as proper documentation is provided, the mileage can be deducted. They also suggest splitting the mileage between the different locations if necessary.
beepampered
beepampered
1,144
Okay, last year, I drove 678 to visit my brother and do a show. It was a good show and I got a recruit as well. Then, I drove home and stopped by my mom's on the way back and did a fundraiser.

I know that legally I can deduct the mileage but I wonder if it's a red flag for an audit. It would be a total of 1379 miles. Would you put that on your taxes? I could also just put the half to my mom's. Thanks for your thoughts.
 
you can take a standard milage deduction. Last year I drove from northern lower MI to VA for a fundraiser-about 1000+ and only had 150 in local shows, so turbo tax did the standard milage.

we've already got out refund and Dave ramsey'ed it. :)
 
You just put down the total mileage so unless you are around 10,000 miles, I wouldn't think there would be any red flags. As long as you have backup, don't worry about it.
 
does anyone know the mileage rate for 2008?
 




First of all, congratulations on a successful show and recruiting a new team member during your trip! It's always great to hear about fellow consultants' achievements. Regarding your question about deducting mileage on your taxes, it's always best to consult with a tax professional for specific advice. However, as a general rule, as long as you have proper documentation and can prove that the mileage was for business purposes, you should be able to deduct it on your taxes. The IRS does allow for deductions of business-related travel expenses, including mileage. In terms of being a red flag for an audit, as long as you have the necessary documentation and can explain the purpose of your trip and how it relates to your business, you should not have any issues. If you're unsure about deducting the full 1379 miles, you could consider splitting it between your brother's and your mom's locations based on the percentage of time spent at each place. I hope this helps and best of luck with your taxes! Keep up the great work as a pampered chef consultant. Sincerely,
 

Related to Tax Deductible Miles: Is It Worth the Risk?

What are tax deductible miles?

Tax deductible miles refer to the miles that an individual has driven for business purposes and can be deducted from their overall taxable income.

What types of activities qualify for tax deductible miles?

Activities such as driving to and from work-related meetings, conferences, or events, delivering goods or services, visiting clients or customers, and traveling between different work locations can qualify for tax deductible miles.

Is it worth the risk to claim tax deductible miles?

It depends on the individual's specific situation. Claiming tax deductible miles can potentially lower your taxable income and save you money, but it is important to accurately track and document your mileage to avoid any potential penalties or audits from the IRS.

What documentation is needed to claim tax deductible miles?

The IRS requires documentation such as a mileage log, receipts for gas and vehicle maintenance, and proof of business-related activities to support your claim for tax deductible miles. It is important to keep thorough and accurate records to avoid any issues with the IRS.

Are there any limitations on tax deductible miles?

Yes, there are certain limitations on tax deductible miles. For example, commuting to and from your regular place of work is not considered tax deductible, and there may be limits on the amount of miles that can be claimed for certain types of business activities. It is important to consult with a tax professional or refer to IRS guidelines for specific limitations.

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