How To Pay a LOT Less Tax Using The IRS Travel Deduction

For many years, the IRS has allowed you totook thosetrips.
deduct many of yourexpenses related to businessToday we have a much better way to track
travel. If you drive an automobile in yourbusinessyour mileage and travelexpenses. Software can
or work, you likely can deduct not only the costdo an extraordinary job of helping youkeep track
of yourgasoline, but can also deduct meals, hotels,of trips. An application running on your PocketPC
tolls, and more.(PDA) can make it super simple and convenient to
If you do a lot of travel for work, this deductionlog your traveldata on the spot.
could be quitelarge. But there's a catch. The IRSThe software lets you use drop down menus and
doesn't want people makingup trips and fudgingcommonly neededfields to quickly and intuitively
figures. To make sure everybody pays theirfairenter your information. Then,when you get back
share, the IRS requires you to keep detailedto the office, you can download the data ontoyou
records of yourmileage. And you can't go backdesktop PC. There the desktop part of the
later and estimate your mileage.software instantlyruns the numbers and prints off
The IRS requires you to document in some detailall the detailed documentationneeded to satisfy
your mileage atthe time of the trip.the IRS.
Now if you've already had some experience withIf this sounds easier than the old manual tracking
the traveldeduction, you know just howmethods,you're right. Tests show people not only
frustrating keeping up with yourmileage andkeep good documentationon EVERY trip, they end
expenses can be. The average person often endsup deducting MUCH more money at tax time.
up attax time with a shoe box stuffed with slipsThat means the tax you pay could be a LOT
of paper, each with amileage number scribbled onlower. It could alsomean your tax REFUND could
it.be much bigger. Either way, using a
Office supply stores sell a cheap little mileagePocketPC with the right software could save you
journal you canuse. That looks like a good solutionbig money whiledramatically reducing the hassle
at first, but the dairydoesn't gather enoughand headaches often associatedwith the travel
information in the right way and -- shouldyou getdeduction.
audited -- won't convince the IRS you actually