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A year-end odometer reading records your vehicle’s miles on the last day of the year. It’s key for taxes, business miles, and keeping your car’s history straight.
Why You Need That Year-End Odometer Reading
Knowing your year-end odometer reading is super important for a few big reasons. Think of it as a yearly check-up for your car’s mileage.
First off, the IRS cares. If you use your car for work or business and want to write off mileage on your taxes, you need to show how much you drove. The IRS needs your odometer readings from the start and end of the year to prove your miles are correct. This helps you claim tax deductions.
Getting your year-end odometer reading also helps you separate miles driven for work from personal trips. This makes sure your deductions are valid and follow the rules.
Keeping good records, including your year-end odometer reading, protects you if the IRS ever checks your taxes. Having a clear log, maybe with receipts, makes an audit much less stressful.
Also, having good odometer records helps when you buy or sell a car. It makes sure everyone knows the car’s true mileage and helps stop fraud.
FAQ
What is a year-end odometer reading?
A year-end odometer reading is the mileage displayed on your vehicle’s odometer at the close of the calendar year (typically December 31), used as a baseline to calculate total annual mileage.
Why is the year-end reading important?
Recording this reading ensures you accurately determine the total miles driven during the year, essential for calculating deductible business mileage and supporting IRS-compliant reports.
How do I capture and use my year-end odometer reading?
Note your odometer’s display on December 31 (or your company’s fiscal year-end), then subtract your starting-year reading to find total mileage; you can record this manually or use tools like MileageWise to automate and store the reading.
Try MileageWise for free for 14 days. No credit card required!
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