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PART TWO

Last time we talked about what items you can deduct on your taxes. If you missed that column you can find it here. This week let's talk about keeping records.

But you can only deduct these items if you have a record of your purchases and the receipts to back them up. This is where a computer or ledger book, the cost of which is also deductible, come in. The ledger book is definitely less expensive up front, but at the end of the year the ledger book is just a page full of numbers, you still have to add them all up and format them into useful reports. A computer will require about the same time putting the data in, but will then give you reports with the click of a button. Whichever method you decide on, the important issue is that you keep good records.

Keep your Log Books also, they are a record of your days away from home and can be used as backup data for taking the daily allowance for meals which the IRS allows. This allowance will often exceed your actual expenses, but you must have backup data to support the number of days you claim. The amount of deductible Per Diem changes every year so be sure to check it so you'll know whether to hang on to those restaurant receipts. There are also special rules for drivers subject to DOT Hours of Service rules so you can deduct a larger percentage of your meal allowance. If you stay in a motel, this is also a deductible expense, so save those receipts also.

Next issue: Doing your taxes. Till then be safe.