I have a question...

[ross]

Frank or anyone with tax knowledge,

I went with standard mileage deduction this year so does that mean I don't have to keep all my receipts(fuel,tolls etc) for 08? I didn't have a need for them when I was doing my 07 taxes this year, so I was just wondering if its really necessary. I also found in your(franks)posts that I can't switch to depreciation deduction option, why is that? sounds odd to me because I don't see a reason why this would matter to IRS.

 

[Fkatz]

I have a question...

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Frank or anyone with tax knowledge,

I went with standard mileage deduction this year so does that mean I don't have to keep all my receipts(fuel,tolls etc) for 08? I didn't have a need for them when I was doing my 07 taxes this year, so I was just wondering if its really necessary. I also found in your(franks)posts that I can't switch to depreciation deduction option, why is that? sounds odd to me because I don't see a reason why this would matter to IRS.

Since you file a Sch C, Business you must keep all reciept for a period of no less than 6 years even though the IRS can only go back 3, it is wise to keep them, all of them.

You can only switch to actual expenses but you cannot switch back to mileage at all, if you do you will definitely be audited. IT MATTERS TO THE IRS. AND IT IS THE LAW.

i HOPE YOU RUN A CARGO VAN FOR THE STANDARD MILEAGE DEDUCTION. IF YOU YOU COULD POSSIBLY BE LOOKING AT AN AUDIT.

fRANK

 

[Fkatz]

If You Drive A Straight Truck You Could Be Looking For A Audit

Frank

 

[ross]

I run a sprinter. The only deductions I used were standard mileage deduction and per diem. I made a big mistake by getting my taxes done by someone(local h+r block) who seemed unfamiliar with the trucking industry. I hope everything goes smoothly and I happen to avoid an audit, because I am not sure if everything was done properly.

 

[Fkatz]

Hi Ross,

There are a lot other deduction that you can take as a driver besides the per diem, I hope you got the correct amount. 75% of the total of 52.00 per day

YOU CAN AMEND YOUR RETURN AND CORRECT THE ITEMS THAT WERE NOT TAKEN ON THE ORIGINAL RETURN, BUT i WOULD HAVE TO HAVE ALL YOUR RECIEPTS TO DO IT PROPERLY, AND NORMALLY IT WOULD NOT CAUSE AN AUDIT.

FRANK