I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, Texas, New York, California and elsewhere. One of the most important things I tell any realtor I meet (in addition to any realtor that has become a client) is they MUST keep a log of their mileage. Unfortunately, stressing this point sometimes falls by the wayside.
If you find yourself in this predicament, or are currently under audit, here are a couple of options you have to keep up with your logs:
1 - If you did not record a mileage log throughout the year, go back into your calendar and start creating it. You should have the starting odometer mileage for the year as well as the ending mileage. Make sure you record the date, starting point, where you're going, who you are meeting, purpose of the trip, and starting and ending mileage.
2 - You can record this manually (such as a notebook) or use an app like MileIQ. The vast majority of realtors I know use this app and love it.
The 2019 mileage rate was 58 cents per mile, and 2020 is 57.5 cents per mile. Remember that driving from your home to the office is considered commuting and not a deductible trip. If you have a qualified home office, however, generally you would be able to deduct the trip from home between offices or other business related trips. Many realtors drive tons of miles, so make sure you take advantage of this huge deduction and don't leave yourself hanging out to dry if you get audited!
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