If you are a resident of Illinois, you are probably aware that the General Assembly passed a 32% state income tax increase and a 38% corporate income tax increase. What you probably don’t know is this legislation also took the first step towards instituting a graduated income tax in the state of Illinois.
A recent Tax Court case (Powell, TC Memo. 2016-111) reinforces the importance of keeping a detailed mileage log to support your business deductions. In this case, a taxpayer used his personal vehicle in his marketing business. He kept a detailed log with the exact miles driven, destination and purpose for some activities.