My work truck is getting old, but still serves it purposes. I really want to make it last, so I'm thinking of getting a new suv to do some of the running around when I'm not doing field work. When I am doing field work I would let my wife drive the suv. The tax law as I just read it as long as I'm using it more than 50% of the time I can write it off. My accountant is out of town and for a while and I'm not able to run this passed her now.
Do any of you do this setup or have any input on the above senario?
Thank you,
Forrest
I'm not familiar with the exact regulations, but I know that you need to keep detailed mileage records when using a vehicle for combined personal/business use. I have a friend who didn't keep good records, got audited by the IRS, IRS found smoke and audited an additional two years, he paid a heavy price because he could not prove that his estimates of business/personal use were accurate.
Check out this link. I think it will give you an idea what is required. IRS Pub 463 (2010) Travel, Entertainment, Gift, and Car Expenses
Edit: Section 4 under "Car Expenses" and Section 5 "Record Keeping"
Good link thanks
I would always keep a personal vehicle even if you have company truck at your disposal. It gives you a little back up when they ask questions with regards to person use of company vehicle.
One of the first lessons I learned from my accountant was to always keep a solid wall between personal and business. Anything moving from one side to the other has to be documented, more so if moving from business to personal. I keep separate bank accounts, credit cards, and vehicles for personal and company use and keep good records in case they ever want to take a look.
Instead of keeping track of all those receipts...
You could just use use the standard mileage rate. It's something like $0.52 per mile now.
Instead of keeping track of all those receipts...
Agree Perry. Mileage is usually more beneficial when it comes to the bottom line. Certainly easier. And they just upped the rate to $0.55 so that helps.
But I still keep all those receipts.
Plus, I don't know if it's just me, but is putting such questions and options really the best thing to do on a public forum.... you know.. black helicopters & stuff...
just sayin'
Instead of keeping track of all those receipts...
I hear you about the black helicopter stuff, but that's why I'm posting I don't want that helicopter to land and guys in suits knock at the door.
After doing a little more research, it looks like keeping the milage log for my usage of that vehicle is the best way to go.
Thanks
Instead of keeping track of all those receipts...
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> Plus, I don't know if it's just me, but is putting such questions and options really the best thing to do on a public forum.... you know.. black helicopters & stuff...
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> just sayin'
I with you on that one, but choosing whether to Go with the Standard Mileage Rate or not isn't really pushing the boundaries of the law.
Of course you won't see me posting on the "How Many Guns do you own?" threads or "Where do you hide your gold?" threads.
Here in OZ...
Here in OZ with dual cabs purchased for business... they are 100% tax deductible.
RADU