Hi folks, I do home based part-time consulting in addition to my full time job. While doing my taxes I realized that I can deduct the mileage spent going to Bank, Post Office, Client’s Office and Hardware Store. I didn’t not log my miles every time I got in and out of the car but my bank deposit proves my travel to the bank, my credit card purchases prove my travel to hardware store and my PO BOX proves that I had to go to post office to pickup the mail.
Is that enough proof to deduct my 700 miles for business errands for past year ?
My total number of miles for the year is about 9500 miles which out of that 3500 is for commuting to my full time job office.
I keep reading that IRS scrutinizes mileage deductions and it’s a well known red flag. Is it even worth taking the 0 deduction here, especially that I didn’t keep a detailed daily log and my only proofs are what I listed above?
I understand that each trip needs to be logged and proved. Can this log be created at the end of the year using the transaction information from Credit Card, Bank Account and online map to see the miles traveled ? Or does it HAVE to be logged on the same day of the trip.

On October 1, 2005, I bought a business which included a used delivery truck being used exclusively for my business. The used delivery truck was estimated to be K. I am trying to finish up 2005 tax return (Schedule c) which was extended. Here is my question on deducting the use of the truck.

I can take section 179 in 2005 and expense entire 6K, right? In that case, I guess I can not use mileage deductions any more beginning 2006.
Or I can use mileage deduction for 2005 and continue to use the mileage method.
But I found some where that if I depreciate my truck the first year using straight line method, I can use mileage method for 2005 and there after as well. What do you think is the best solution?
For your information, my mileage per month is about 1,000 miles. Thank you so much.

I work as an independent contractor and use the mileage deductions method. At 50 cents a mile, i will be able to deduct more than my income, it will appear as if i had a net loss. Do i still have to pay any self employment taxes or any other taxes?