Documentation the IRS expects to support deductions

What do you need to deduct auto expenses?
The auto expense deduction can sometimes be a gold mine of tax savings ... BUT only if you track and substantiate your claims strictly per IRS protocol. To help you mazimize your options, Idea Cafe offers detailed tips and a mileage log form.

IRS official words about documentation
The IRS has several helpful publications which explain the specific details of various typical business deduction categories and what they expect to see for each.

Idea Cafe offers you our guide to these in

Tax Center / The IRS & You / Publications

You'll find all of the publications we talk about here at the IRS website. To get them in PDF format, select the search drop down option for "Forms & Publications", enter the form number and click "GO". The HTML version is available by searching for the publication number in the "Entire Site" option.

We’ve found the best IRS info on documentation in these pubs:

• Publication 583, Starting a Business and Keeping Records
If you are preparing to launch your company, start with this pub first. It’s the friendliest, but packed with vital info and real-life examples.

• Publication 535, Business Expenses
The bible for what you can and can’t deduct for business.

• Publication 463, Travel, Entertainment, Gift & Car Expenses
These types of deductions are often disallowed in audits because people tend to overstate them and have little evidence to back them up. All it takes is making notes in your daily planner about where you traveled, total business miles involved and who you entertained where -- plus what was the business reason behind each expense.

• Publication 587, Business Use of Your Home
There has been a lot of confusion about home office expense deductions; this publication expresses the IRS position and gives examples.

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