Sorry, More Van Mileage and Per Diem Questions

Speedwagen

Seasoned Expediter
Cargo Van Mileage Deduct vs Depreciation:
As I have read and researched:
If one has their own authority and does not lease to a carrier
for exclusive use, yet uses many carriers/ brokers, one is
considered "For Hire" and standard mileage deduct is not
allowed- only standard depreciation and actual expenses, correct?
What if one only uses multiple carriers (which some folks do?),
and uses the carrier's authority(s) for the load by branding their vehicle
with their company information by use of a magnetic sign, and then switching carriers/loads for the next job- would/could that
be considered "exclusive use" and not be considered "For Hire?"
Not sure on that one...
Edit: In general, I'm having a hard time understanding why being
"For Hire" or "Not For Hire/ exclusive leased" has any bearing
on whether a 85%/15% Standard Mileage deduct is allowed for vans.

Cargo Van Per Diem
OK, so you're in a cargo van and away from home working:
You are under 10,000GVW and do not do Haz Mat, so you
really do not fall under any Federal regulations-
No 80% Per Diem allowance/ deduction?
If not, what is acceptable with IRS?
50% Per Diem or 50% of Actual Expenses or?

Thanks ahead of time for the response(s).
 
Last edited:

Fkatz

Veteran Expediter
Charter Member
Sorry, More Van Mileage and Per Diem Questions


Cargo Van Mileage Deduct vs Depreciation:
As I have read and researched:
If one has their own authority and does not lease to a carrier for exclusive use, yet uses many carriers/ brokers, one is considered "For Hire" and standard mileage deduct is not allowed- only standard depreciation and actual expenses, correct?
What if one only uses multiple carriers (which some folks do?), and uses the carrier's authority(s) for the load by branding their vehicle with their company information by use of a magnetic sign, and then switching carriers/loads for the next job- would/could that be considered "exclusive use" and not be considered "For Hire?"
Not sure on that one...Edit: In general, I'm having a hard time understanding why being "For Hire" or "Not For Hire/ exclusive leased" has any bearing on whether a 85%/15% Standard Mileage deduct is allowed for vans.

If you have your own authority you are considered "FOR HIRE" AND ARE NOT ENTITLED TO THE STANDARD MILEAGE RATE AT ALL. YOU MUST USE DEPRECIATION AND ACTUAL EXPENSES. THAT IS BECAUSE YOU SHOULD OR HAVE RECIEVED MORE THAN 1 OR 2 1099'S OR IF YOU WERE LEASED TO ONE CARRIER ONLY, BUT SWITCHING FROM LETS SAY PANTHER TO FEDEX, OR ANY OF THE OTHER EXPEDITING COMPANIES THEN IN A CARGO VAN STANDARD MILEAGE IS "NOT FOR HIRE' CAUSE YOU ARE NOT CONSIDERD OTR AND FEDERAL CODE 484120

YOU ARE CONSIDERED A CORRIER UNDER CODE 492000

Cargo Van Per Diem
OK, so you're in a cargo van and away from home working:
You are under 10,000GVW and do not do Haz Mat, so you
really do not fall under any Federal regulations-
No 80% Per Diem allowance/ deduction?
If not, what is acceptable with IRS?
50% Per Diem or 50% of Actual Expenses or?

THE PER DIEM IS STRICKLY ARE REIMBURSEMENT FOR YOU MEALS ONLY WHILE YOU ARE AWAY FROM YOU REGULAR HOME. IT HAS NOTHING TO DO WITH ACTUAL EXPENSES, OR DEPREICATION.
FOR THE TRANSPORTATION INDUSTRY IT IS $59.00 PER DAY WHILE YOUR ON THE ROAD, SUB TO DOT REGS. SUBJECT TO 80% OF THE TOTAL.
IF YOU OUT 300 DAYS A YEAR, AT 59 PER DAY WOULD EQUAL $ 17, 700.00 YOU RECIVE $14, 160.00 AS A DEDUCTION SEPARATE FROM YOUR NORMAL EXPENSES AND DEPREICATION. USING ACTUAL EXPNESE.
BUT YOU MUST PRORATE THE DAYS YOU LEAVE YOUR HOME AND RETURN. DRIVER THROUGHS ARE NOT CONSIDERED OFF DUTY AT HOME. YOU ARE STILL UNDER LOAD.
Thanks ahead of time for the response(s).

fRANK
 
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