Tom Raymond Posted February 7, 2011 Report Share Posted February 7, 2011 While trying to locate the current NY mileage rate I stumbled upon a chart for allowable ownership and operating expenses for transportation. http://www.irs.gov/businesses/small/art ... 23,00.html The table outlines the allowable ownership and operating expenses for sole proprietors, converting the total cost of ownership to an operating expense. I thought my company would have to lease a vehicle in order to expense it in that fashion. Is anyone familiar with this tax rule? I know I should ask my accountant, but if she had known about it I'd be doing it all ready. I want a new accountant, but the wife started her business first so I'm stuck with the ninny she picked. How do the brethren handle their vehicle expenses? Currently I personally own my inspectormobile/daily driver and deduct my work related mileage. Is that what most of you do, or are your vehicles company property? I know I'm in the minority operating as a DBA, but since there is no legal separation between business and personal assets doesn't that mean my ride is already the 'company car'? Quote Link to comment Share on other sites More sharing options...
Scottpat Posted February 7, 2011 Report Share Posted February 7, 2011 I take the standard IRS mileage deduction and deduct any personal usage I might have. I average around 18,000 to 20,000 miles a year of business use and about 4,000 miles of personal use on my truck. Quote Link to comment Share on other sites More sharing options...
Inspectorjoe Posted February 7, 2011 Report Share Posted February 7, 2011 While trying to locate the current NY mileage rate I stumbled upon a chart for allowable ownership and operating expenses for transportation. http://www.irs.gov/businesses/small/art ... 23,00.html The table outlines the allowable ownership and operating expenses for sole proprietors, converting the total cost of ownership to an operating expense. I thought my company would have to lease a vehicle in order to expense it in that fashion. Is anyone familiar with this tax rule? I know I should ask my accountant, but if she had known about it I'd be doing it all ready. I want a new accountant, but the wife started her business first so I'm stuck with the ninny she picked. I'm not sure what that table is for, but this is part of the disclaimer at the top: Disclaimer: IRS Collection Financial Standards are intended for use in calculating repayment of delinquent taxes. It doesn't seem to be a table you'd want to use anyway. Unless you have almost no work, the deductions would be only a fraction of what you could expense by deducting your actual mileage. The (outdated) IRS rules are in this publication starting on page 14. How do the brethren handle their vehicle expenses? Currently I personally own my inspectormobile/daily driver and deduct my work related mileage. Is that what most of you do, or are your vehicles company property? I know I'm in the minority operating as a DBA, but since there is no legal separation between business and personal assets doesn't that mean my ride is already the 'company car'? I'm a DBA too (been meaning to change that to an LLC for 10 years now, but that's another story). I use my personal vehicle for work and deduct the actual business related mileage. I don't recall exactly what the figure was for last year, but it was probably around 8 or 9 thousand dollars. My next vehicle will be a 'company vehicle', used exclusively for business. Then, I can deduct all costs and won't need to keep track of mileage. Quote Link to comment Share on other sites More sharing options...
Marc Posted February 7, 2011 Report Share Posted February 7, 2011 I lease my truck to my company which is an LLC. Pays me a monthly, insurance, fuel, repairs, etc. I've another smaller pickup that I can call my 'personal' vehicle. Quote Link to comment Share on other sites More sharing options...
kurt Posted February 7, 2011 Report Share Posted February 7, 2011 I do what Scott does. In many ways, getting a clunker for personal use and deducting all expense for the business vehicle is easier and cheaper than figuring out this crap and keeping mileage records. Quote Link to comment Share on other sites More sharing options...
John Kogel Posted February 8, 2011 Report Share Posted February 8, 2011 I do what Scott does. In many ways, getting a clunker for personal use and deducting all expense for the business vehicle is easier and cheaper than figuring out this crap and keeping mileage records. In my country, where they have taxation down to an art, if the auditor comes knocking, he will ask to see records of mileage, (even though we haven't had miles since the 70's), and the tax form I use wants my total, so it is good to record the odometer readings a couple of times a week at least. I just buy a cheap daybook for that and throw it in with my receipts at the end of the year. Quote Link to comment Share on other sites More sharing options...
esch Posted February 8, 2011 Report Share Posted February 8, 2011 Depreciation Quote Link to comment Share on other sites More sharing options...
Scottpat Posted February 9, 2011 Report Share Posted February 9, 2011 I do what Scott does. In many ways, getting a clunker for personal use and deducting all expense for the business vehicle is easier and cheaper than figuring out this crap and keeping mileage records. In my country, where they have taxation down to an art, if the auditor comes knocking, he will ask to see records of mileage, (even though we haven't had miles since the 70's), and the tax form I use wants my total, so it is good to record the odometer readings a couple of times a week at least. I just buy a cheap daybook for that and throw it in with my receipts at the end of the year. Same here in the States... I just keep my millage in outlook. At end of the day I just put the miles down for each appointment. Sometimes it is at the end of the week, but if the tax man comes a knocking I will have all of my miles on a form. I just hope they give me about a month's notice just so I can double check to make sure it is right [] Quote Link to comment Share on other sites More sharing options...
Brad Manor Posted February 9, 2011 Report Share Posted February 9, 2011 he will ask to see records of mileage, (even though we haven't had miles since the 70's) It's called "metrage" here.[:-graduat My wife is a CRA auditor and as such I am compelled to stay on top of these things. -B Quote Link to comment Share on other sites More sharing options...
Chad Fabry Posted February 9, 2011 Report Share Posted February 9, 2011 Nice to see you hanging around, Brad Quote Link to comment Share on other sites More sharing options...
John Dirks Jr Posted February 10, 2011 Report Share Posted February 10, 2011 I do what Scott does. In many ways, getting a clunker for personal use and deducting all expense for the business vehicle is easier and cheaper than figuring out this crap and keeping mileage records. I do the same. BTW, I thought IRS requires records be kept. I know you don't have to show the record when you file but you better have 'em if they decide to audit you. One of the questions on the IRS form is: Do you have documentation to support your claims? You better answer yes to this question Quote Link to comment Share on other sites More sharing options...
Chad Fabry Posted February 10, 2011 Report Share Posted February 10, 2011 Do you have documentation to support your claims? Sure. I know what inspections I did- mapquest will be happy to provide documentation. Quote Link to comment Share on other sites More sharing options...
Brad Manor Posted February 10, 2011 Report Share Posted February 10, 2011 Nice to see you hanging around, Brad Thanks, Chad! -B Quote Link to comment Share on other sites More sharing options...
John Dirks Jr Posted February 10, 2011 Report Share Posted February 10, 2011 Do you have documentation to support your claims? Sure. I know what inspections I did- mapquest will be happy to provide documentation. I can just imagine how long it would take to develop a record with that method after the fact. it would give them a perfect opportunity to be a thorn in your side. Its easy to keep a log in a clipboard with pencil. Here's the doc I made and use. I dont always log the begin and end but I always log the total miles. If it multiple jobs in one day I just list it as "multi run". Download Attachment: JOHNSMILEAGECHART.doc 63.95 KB Quote Link to comment Share on other sites More sharing options...
Chad Fabry Posted February 10, 2011 Report Share Posted February 10, 2011 I can just imagine how long it would take to develop a record with that method after the fact. it would give them a perfect opportunity to be a thorn in your side. Not true. As far as keeping records is concerned- it's a valid method. I'm positive I could run a report and mapquest a year's worth of mileage in an hour or two. Lemme know how much time you spend recording and tabulating unaudited mileage. Here's my best way though. I own my company, my company owns a vehicle and I use use the vehicle for business only, then I deduct my actual expense- it's more than 50.5cents per mile. StructureSmart spends 20 cents a mile on fuel alone. Quote Link to comment Share on other sites More sharing options...
John Kogel Posted February 10, 2011 Report Share Posted February 10, 2011 Mileages may vary. [] My wife's got a nice clunker, so mine's all work. A $5 daybook has the calender dates, and I copy the last 4 or 5 digits off the odometer into yesterday's date on the way to the first stop sign. Easy to do the math at year end. This year's minus last year's. If I don't feel 100% was business, I can deduct a %age for pleasure. Pleasure, what's that? Quote Link to comment Share on other sites More sharing options...
Mark P Posted February 10, 2011 Report Share Posted February 10, 2011 Every job I book has an appoitment sheet filled out. When I get in the van to go to that appoitment I turn on my GPS and get directions. The GPS tells me the miles and I write it on top on the appoitment sheet. Later I enter that millage in an excell sheet that I use to track dirrerent data. Simple. Quote Link to comment Share on other sites More sharing options...
John Dirks Jr Posted February 10, 2011 Report Share Posted February 10, 2011 I can just imagine how long it would take to develop a record with that method after the fact. it would give them a perfect opportunity to be a thorn in your side. Not true. As far as keeping records is concerned- it's a valid method. I'm positive I could run a report and mapquest a year's worth of mileage in an hour or two. Lemme know how much time you spend recording and tabulating unaudited mileage. Here's my best way though. I own my company, my company owns a vehicle and I use use the vehicle for business only, then I deduct my actual expense- it's more than 50.5cents per mile. StructureSmart spends 20 cents a mile on fuel alone. It takes me 5 seconds to log each entry and 10-15mins at the end of the year to add it all up. Quote Link to comment Share on other sites More sharing options...
Nolan Kienitz Posted February 10, 2011 Report Share Posted February 10, 2011 I maintain an Excel Inspection Log with various data and that includes R/T mileage derived from Google Maps or Mapquest as I plan the route. Excel formulas total monthly/annual values and then port to tax data for CPA. Quote Link to comment Share on other sites More sharing options...
Tom Raymond Posted February 10, 2011 Author Report Share Posted February 10, 2011 Here's my best way though. I own my company, my company owns a vehicle and I use use the vehicle for business only, then I deduct my actual expense- it's more than 50.5cents per mile. StructureSmart spends 20 cents a mile on fuel alone. That's what I want to do but it's not clear if a DBA can own a vehicle, it's just an assumed name. If I need another vehicle for personal use I've got that covered: the '07 Outback for my biz, an '09 Forester for the wife's biz, and '79 CJ5 for personal use. Do you think the IRS would notice that the Jeep only has a bikini top? Quote Link to comment Share on other sites More sharing options...
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