To claim a deduction for transportation expenses related to business, you must be able to provide the IRS with the exact log of every mile you traveled during the year.
At the bare minimum, the IRS will want to see the following information for every single trip you claim.
- DATE of the trip
- THE PURPOSE OF THE TRIP This should explain what you were doing at the location (eg. “Showing a property”).
- EXACT MILEAGE driven.
- TRIP DESTINATION The name or address of where you went. This should be as specific as possible (You can’t say “downtown” or “Hollywood”).
There are a lot of automatic mileage tracking products available that can help you with your mileage log. We highly recommend The Mileage Ace because it only costs $0.49/day and it is America’s most accurate mileage tracker.