Originally Posted by Richard Martin
I'm afraid you don't know how an audit works. An IRS auditor doesn't have to disprove anything. At the start of the audit it is presumed that every deduction that you took is falsified and you have to prove each and every one if the auditor desires. If you can't prove something then they use industry standards as their benchmark. That usually doesn't work out real well for the person being audited.
I'm am also afraid I don't know how an audit works. I don't write off any of my mileage. and as far as gas and diesel anyone with half of a brain will very quickly realize, a truck requires oil changes, and gas or diesel, tires need replacing, and so on, to get a lawn mower, mulch or anything that may be involved in landscaping to and from a job site. Am I wrong? trucks don't need fuel to get a to job site especially when towing an 5-6000lbs or maybe even 10-12,000lbs lawn mowers and string trimmers don't require gas....i don't think anyone will question that unless you are using an obscene amount of gas and diesel per year and claim to be a solo operator yet you are making 500,000 dollars a year, that might look fishy and get someone audited. I hope I never get audited but if I do, I have records of all the estimates I've done since I started, also every lawn customer and plowing customers with dates when I was at each location, next year I may start adding a time when I was there as well. I do a time for the plowing customers since snow can melt by the time some wake up or get home from work. I'm working on a personal vehicle but being that it's winter time, and my work has come to a stop, it wouldn't be the smartest idea to buy a vehicle, insure it and register it now. I don't really go anywhere from December to march except business related stuff. Not a whole lot to do up here in the winter.