Let's talk writing off mileage and lease payments?

[DNT H8]

How's does this work guys? Wife has a job now where she drives to 10 cases a day. How will this work come tax time, I know to keep track of mileage but do we save gas recites or just jot down gallons/amount bought? We sold our house so lost writing off ability, but always ended up taking the standard deduction anyhow.
Second part is I hear leasing is best for this situation, is that true and if so why?

Thank you....

 

[Sonic605hp]

If she's driving a lot of miles just write off the miles at the end of the year, it makes a huge difference in you return. I'm in outside sales and the wife is an in home care respiratory therapist, we both drive a lot and write off about 70-80k in miles a year. Just keep a log book. I've been audited and that's all they asked for and I didn't owe those pricks a dime.

 

[DNT H8]

Nice did you keep track of gas? And if so how... What did they (IRS) want to see total number of miles per day, or by odometer reading?
Is this like giving to the goodwill or uniforms for work you have to itemize to take full advantage?
Thanks for the info btw

 

[sleek98]

Is she a w-2 employee or does she receive a 1099-misc at the end of the year?

If she is a w2 employee you have to itemize and then it is subject to the 2% rule. You said that you are currently taking the standard deduction so you might not get benefit unless she drives an absurd amount every year or your right on the line of itemizing.

I'd she get a 1099 misc you can take it against income on sch c.

Either way keep a book and have her write down all of her business trips in the car. Make sure to document the mileage at 1/1 so you can get your business % easily. Also The drive to the first case is not deductible. All trips From case 1 to the last case is deductible. From the last case to home is not deductible.

You can take the standard mileage rate and not keep track of expenses or you can keep every gas receipt, maintenance and lease payment and apply the business % to the total and deduct that. Unless you have higher than average gas prices or a high lease payment then the standard rate is easier and usually better. Once you choose a method for that car it cannot be changed. So if you choose actual expenses and you own it for the next 5 years you have to use actual all 5 years you cannot change while using that car.p


btw I am a tax CPA.

 

[oldmodman]

When I started my own business I knew I would have to deliver and pick up a lot of video gear.

So I just made my Explorer the company car. All gas, service, and tire receipts were kept in a separate folder, along with a copy of the invoice associated with that particular delivery.

I have been audited three times and each time my paperwork was accepted without question. Keep good records and you will be fine.