Of course there's second part: record keeping. In order to audit-proof these deductions, you will need to keep a vehicle-use log. The log can be a simple notebook with columns for destination, trip's purpose, and odometer reading. You must complete log for every car trip you make, not just business-related ones. It may seem like a lot of effort, but each entry would take less than a minute to record and after a week filling in columns would become as much a habit as fastening your seatbelt.

You're probably wondering if deduction is actually worth inconvenience of rearranging your schedule and keeping a log of all your car trips. Decide for yourself. If your round-trip daily commute is only 10 miles, you can earn a deduction of $3.45 every working day, almost $20 a week, over $1000 for an entire year and that amount does not include mileage for business-related errands. Basically not taking time and effort to claim this deduction is like throwing $10 out of your car window every 30 miles!

Besides writing off your car's accumulated mileage at tax time, you can also claim other automobile-related expenses. For example, you can claim gasoline, insurance, parking fees, and tollbooth expenses as additional deductions. Just keep all receipts and documentation in order to protect yourself in case of an audit.

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