Ok, so I'm battening down the hatches in preparation for the increased audit rate on pass throughs and disregarded entities.
My client's taking mileage deductions on personal vehicles have mileage logs so we're good there but I'm realizing two things:
1. I need to estimate their personal use of company vehicles and add it to their W2s
2. I really need some kind of documentation showing the vehicle was only used for business
What do you guys do about this? Do you make a business owner have a mileage diary for all of his company owned vehicles? Is this necessary for a guy who has a fleet of 20 trucks and owns 4 personal vehicles? Do I still need to prove he didn't use it for personal?
What kind of documentation do you guys use for company vehicles (taking depreciation) when the guy has an actual personal vehicle? Does it need to be a full on mileage diary as a contemporaneous record?
Thank you all in advance!!