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Tax Compliance

MileLog helps you maintain proper documentation for tax deductions and reimbursements. This guide explains how MileLog helps you stay compliant with IRS and CRA requirements.

United States (IRS) Requirements​

Business Mileage​

For business mileage deductions in the U.S., the IRS requires:

  1. The date of the trip
  2. Your destination
  3. The business purpose
  4. The number of miles driven
  5. The total business miles for the year

MileLog automatically records items 1, 2, and 4, and prompts you to enter item 3. The app also maintains your yearly total (item 5).

Current Mileage Rates (2024)​

MileLog automatically applies the correct rates for the appropriate year:

PurposeRate per mile
Business$0.67
Medical/Moving$0.22
Charitable$0.14

Note: These rates are updated by the IRS annually. MileLog updates automatically when rates change.

Documentation Requirements​

The IRS requires "adequate records" which include:

  • A mileage log with dates, destinations, purpose, and miles driven
  • Records created close to the time of the expense
  • Documentation kept for as long as the return can be audited (typically 3-7 years)

MileLog's automatic trip detection creates these records in real-time, satisfying the "close to the time" requirement.

Canada (CRA) Requirements​

Business Mileage​

For business mileage in Canada, the CRA requires:

  1. The date of the trip
  2. The destination
  3. The purpose of the trip
  4. The kilometers driven
  5. The vehicle information
  6. Total business kilometers for the year

MileLog captures all this information and allows you to set your vehicle details in the app settings.

CRA Rates and Allowances​

The Canada Revenue Agency typically updates rates annually. MileLog maintains current rates for:

  • The prescribed kilometer allowance rate
  • Reasonable automobile allowance rates

Generating Tax-Compliant Reports​

MileLog makes it easy to generate compliant reports:

IRS-Ready Reports​

  1. Go to Reports > Tax Summary
  2. Select the tax year
  3. Choose "IRS Format"
  4. Generate the report
  5. Export as PDF for your records

CRA-Ready Reports​

  1. Go to Reports > Tax Summary
  2. Select the tax year
  3. Choose "CRA Format"
  4. Generate the report
  5. Export as PDF for your records

Best Practices for Audit Protection​

MileLog helps you maintain audit-ready records:

Trip Classification Habits​

  • Classify trips promptly after they occur
  • Add detailed purpose descriptions (e.g., "Client meeting with ABC Corp" rather than just "Meeting")
  • Take advantage of custom tags to organize business trips by project or client

Supporting Documentation​

In addition to your MileLog records, maintain:

  • Receipts for related expenses
  • Calendar entries for meetings
  • Email confirmations for appointments
  • Client contracts showing work locations

Regular Backups​

  • Enable cloud sync by signing into your account
  • Export PDF/CSV reports quarterly
  • Store reports in a safe location with your tax documents

Disclaimer​

While MileLog is designed to help you maintain compliant records, tax laws change frequently. Always consult with a qualified tax professional regarding your specific situation.