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I am adding some questions I have come across while building our new community platform. Figured these would be great conversation starters!
Does anybody have any tricks they use?
I think you need to ask the client what kind of records they might have. They might have a calendar that would tell them where they went on certain days. It's going to be up to the client to reconstruct it.
If you have trouble getting mileage (like that's never happened before) there's a couple of things you can do to help your client. 1) Total Mileage: ask for their maintenance records. Invoices from dealers and other vendors have the mileage on them. Start and finish. get the ones closest to Jan 1st and then the ones closest to Dec 31 including the last one from the previous year and the first one from the year after the tax year. You can interpolate the beginning and ending mileage. 2) Business miles: Use their calendar. If they didn't keep track of where they were, ask them to recreate one as best they can. Between a calendar of where they were and Google Maps, they can pretty well figure it out.
Now, if you have someone that drives all the time, like a Contract Salesperson, it's not that difficult for them to estimate and get closer than just a guess. Don't ever just guess. If you can't defend it to an auditor, don't do it.
Let me add one thing on the Total Mileage side: The purchase order of a vehicle has both the beginning mileage of the new one and ending mileage of the old one.
irs approved method to have them recreate 3 months and annualize it.
The best thing is to have your client start using a mileage app.