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Income tax item- corps and use of mileage method.......
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jakescia
Posted 6/27/2006 10:17 (#22254 - in reply to #22134)
Subject: RE: Income tax item- corps and use of mileage method.......



Oskaloosa, Iowa 52577

I think you are referring to a "standard route" (can't recall the exact terminology in the reg)-------and yes, you can avoid the continuous detail, if you first establish the details of a route, and THEN prove that you in fact are on that established route on a regular basis thereafter.

re farmers---------- very abused area.  Farmers are NOT excluded from the 274(d) reporting requirements, UNLESS they conform to reg 1.274-6T, and as I recall, if the farmer (including corps) takes only 75% of the allowable deductions related to listed property (which includes pu 6000lbs), then no documents need be maintained re mileage.  This is the only exception to the mileage log requirement.

The hooker------------ that vehicle has to be used.........and the exact terms escape me right now.........but something along the order of "regularly and continously"  in the business of farming in order to be able to use the 75% exemption.

Now, without some form of log as to mileage, how can one prove that the unit is so used "regularly and continously"?  The old beater with feed sacks in it is obvious...........but the wife's suburban????

We see a lot of practitioners using the rate method.......... and actual method for 100%..........just a bunch.  And when we ask if the mileage log is available in the event of an audit, some of the blank stares would be comical if the situation was not so serious.  Without the log, US Supreme Court says nada........so agents are required to follow that decision.

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