Blog

Do you want to or have you taken a mileage deduction?

The rules for mileage deduction?
The IRS is starting to come down hard on mileage deductions. If audited, records must reflect the amount of miles, time and place the driving took place, the business purpose and the business relationship to the taxpayer as shown on their Table 5.2 below.
Table 5-2. Daily Business Mileage and Expense Log Name:

Date

Destination (City, Town, or Area
Business Purpose (Who/What)
Odometer Start
Odometer End
Miles this Trip

Company Loans

Sometimes to keep your cash flow moving, you may need to loan your Company money.  This is perfectly legitimate, but make sure there is a written promissory note, with some reasonable interest rate, and some reasonable payment schedule.

I would recommend 1+prime as a minimum rate.  The prime rate has remained at 3.25% since the end of 2008.   Make sure you make timely interest payments and then report this interest as income on your 1040 form.

Pages

Subscribe to RSS - blogs