Robert R. Rowley PS

Attorney at Law


How Not to Deduct Your Business Auto Mileage – What This Broker Did Wrong…

Jim Chapin, a California real estate broker, used his Toyota Sequoia SUV for his real estate business during 2009.

He figured that he drove a total of 11,135 miles for business that year and deducted $5,309 for car and truck expenses.

The IRS audited him and disallowed the entire deduction, and also added on a 20 percent negligence penalty. Chapin appealed to the Tax Court and lost.

Here’s what he did wrong:

via Real estate broker shows how to turn business mileage deduction into a negligence penalty | Inman News.