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LSDefine
Simple English definitions for legal terms
Mileage Log
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A quick definition of Mileage Log:
A mileage log is a record of how far a company's vehicles have been driven. It's important for companies to keep a mileage log in case the government wants to check their financial information. If a company doesn't have a detailed record of how far their vehicles have been driven, they might not get as much money back on their taxes. Keeping a mileage log helps companies save money by reducing the amount of taxes they have to pay.
A more thorough explanation:
A mileage log is a record of the distance driven by a company's vehicles. It is important for companies to keep a mileage log because it can be used as evidence in case of an IRS audit. An IRS audit is a review of a company's financial information to ensure that it is accurate and that the reported amount of tax is correct.
For example, if a company has a mileage log that shows that a vehicle was driven 10,000 miles for business purposes, they can use that information to claim a tax deduction. However, if they do not have a mileage log and merely estimate the mileage, they may lose out on tax deductions.
Keeping a mileage log may seem tedious, but it can save companies money by reducing their taxable income. It is important to record the mileage of each trip for each vehicle to ensure that the log is accurate and can be used as evidence in case of an IRS audit.