As another year comes to a close (oh my, make that a decade!) it's time to clear out that closet & make room for another year of Christmas toys... or tax records as the case may be.
But don't get too shred happy or throw that shredding party just yet as a recent tax court case points out. In Menzies v. Commissioner, Mr. Menzies lost over $12,000 of business mileage deduction because he lacked documentation. Or rather he had documentation, in the form of an mileage log recorded in his "daily planner", but tossed it after he received his refund for the year after the deduction was claimed.
Unfortunately, the audit notice came much later.