For vehicle expense calculation in rental property, what is the differece between "I documented work miles' and 'I didn't'

Forum|Forum|3 years ago
March 15, 2023
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Why does Turbotax ask me about this question for vehicle expense in rental property?

I didn't see any change reflecting on Schedule E by selecting 'Yes, I documented my work miles' or 'No, I didn't'

Does the answer to this question matter to the tax return calculation?

Best answer by TomK2023

The program doesn't require you to show such mileage proof, however...

The law requires that you substantiate your expenses by adequate records or by sufficient evidence to support your own statement. For further information on recordkeeping, refer to Topic No. 305.

Well-organized records make it easier to prepare a tax return and help provide answers if your return is selected for examination or if you receive an IRS notice.

If you plan to deduct your vehicle expenses, the IRS requires you to have proof to show how many miles you’ve driven. This could include a written mileage logbook, a spreadsheet showing your mileage, or a mileage tracking app on your phone.

T

TomK2023Answer

The program doesn't require you to show such mileage proof, however...

The law requires that you substantiate your expenses by adequate records or by sufficient evidence to support your own statement. For further information on recordkeeping, refer to Topic No. 305.

Well-organized records make it easier to prepare a tax return and help provide answers if your return is selected for examination or if you receive an IRS notice.

If you plan to deduct your vehicle expenses, the IRS requires you to have proof to show how many miles you’ve driven. This could include a written mileage logbook, a spreadsheet showing your mileage, or a mileage tracking app on your phone.

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