When my truck breaks down on the road and it has to be in the shop for several days I rent a car for transportaton. IS that rental deductable? Layoutshooter
car rental deduction?
- Thread starter layoutshooter
- Start date
I rented one to go home when I was broke down. My CPA asked me about it, if I had used it to move some freight. Since I hadn't, he thought it wouldn't be deductable. When I said that a motel would have been about the same price, he said that made sense and we used the deduction.
Did the IRS give you any trouble over it? Layoutshooter
I haven't been audited.
Good to hear, we are ALWAYS looking for a way to pay less in taxes and use our money to improve our business. Layoutshooter
I'd say if it was all off duty it would private use and not deductible . Did you log any on duty time while using the rental ? I think if an FMCSA auditor and an IRS auditor ever got together and compared HOS with deductions it would cause a lot of headaches .
I'm with crazy on this one. Log it; deduct it. If you used the rental to transport and or safeguard your business equipment such as GPS, CB, computer, BOLS and logs, as well as your personal stuff, you'd have a legitimate reason to deduct the "necessary for business use of the rental." The cost avoidance of a hotel bill rationale is pretty lame.
We have never done this as yet. We did have to rent a car 2 weeks ago when the truck was in the shop. There we no motels in walking distance and the shop did not have a shuttle. We were not able to stay in the truck since it was being worked on. We were kinda without a good choice. Was just wondering out loud. I will be sending a email to our tax guy for his advice. I sort of think of it as a business expense but who knows for sure.
Layoutshooter
Layoutshooter
Yes it is.
Thanks Phil,
I kinda would think it would have to be, but then again, I always get in trouble when I think!!! Layoutshooter
I kinda would think it would have to be, but then again, I always get in trouble when I think!!! Layoutshooter
When we went to Kansas City for our class the hotel was deductable and also per diem for those days. We are also able to deduct the mileage we put on our car from the time we left the house till we got back. We will also be taking perdiem for those days. That is the plan at this time unless at the end of the year our account tells us we cannot do it this way.
I would think that would be fine. A business related expense. The more deductions the better. Layoutshooter
Why would it be lame? Had I stayed in a motel, and away from home, there would have been per diem. I saved the government some money. And, Lord knows, they need all the help they can get!
There are two separate and distict events being discussed. Deductions for an auto rental and deductions for a hotel. For a taxpayer to suggest that he could have taken a legitimate deduction for a hotel, but since he didn't, he can take this other deduction whether authorized or not. Each deduction must be authorized on it's own merit; that's why I said it's a lame excuse to use the avoidance of one expense to justify an unrelated deduction...just an opinion.
I think that some scenarios of a deduction for a rental vehicle are allowable and some may not be. You may be able to justify a rental to go home while repairs are being effected to the truck, but any personal use of the vehicle while home is not deductable...just another opinion.
I think that some scenarios of a deduction for a rental vehicle are allowable and some may not be. You may be able to justify a rental to go home while repairs are being effected to the truck, but any personal use of the vehicle while home is not deductable...just another opinion.
Taxes in general suck. They are not here to help us get ahead in anyway. I think we should tax by use to sociaity insted of by how much you earn. Congressmen and Senators would pay the highest rate since they are the most useless etc.!!! I hope to hear from my tax guy on this question later in the week. Layoutshooter
Terry made some good points . If you took a taxi from the shop where your truck was to a hotel that should be a deduction , so why not a rental car ? Another good point was removing personal items like a GPS or computer from the truck . Using a rental car to provide security for them is deductible . How far would an auditor go ? What if the shop or the hotel offered free transportation ?
Layoutshooter for President!
Hi All,
It seems that there is confusion on this question,
Since the truck broke down, and is in the shop, the car rental and a Hotel are deductible, and it includes the per Diem for the days that you are broke down.
On Schedule C
The Per Diem is reimbusement for meals only, $52.00 US and $58.00 Canada. at 80% for 2008 line 24B
the Hotel is fully deductible under travel, line 24A
and the Car Rental is also fully deductible under vehicle, equipment, rental or lease. Line 20
only thing not deductible on this is the mileage. this can not be taken as a deduction on a car rental. you use the full price. including fuel, even if you go home. you cannot use the mileage for this deduction.
Franklin Katz
Franks Tax & Business Service
120 York Rd
Kings Mountain, NC 28086
704-739-4039
Circular 230 Disclaimer - Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.
It seems that there is confusion on this question,
Since the truck broke down, and is in the shop, the car rental and a Hotel are deductible, and it includes the per Diem for the days that you are broke down.
On Schedule C
The Per Diem is reimbusement for meals only, $52.00 US and $58.00 Canada. at 80% for 2008 line 24B
the Hotel is fully deductible under travel, line 24A
and the Car Rental is also fully deductible under vehicle, equipment, rental or lease. Line 20
only thing not deductible on this is the mileage. this can not be taken as a deduction on a car rental. you use the full price. including fuel, even if you go home. you cannot use the mileage for this deduction.
Franklin Katz
Franks Tax & Business Service
120 York Rd
Kings Mountain, NC 28086
704-739-4039
Circular 230 Disclaimer - Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.
Thanks for all the help in here. My tax guy got back to me and said that it would be deductable under the circumstances. You don't want me for President. Welfare would end, ALL socialist programs would end. People would HAVE to work for a living. Crime would no longer be accectable. We would be energy independent. IF we are going to fight "Global Warming" EVERYONE will fight it, and I mean EVERYYONE!!! As to Iraq, Iran, Syria, China, Russia and ALL the other goofies in the world, straighten up or BOOM!!!! All socialists can move to one of those socialist countries before they get boomed!!!! Remeber, if you vote for socialism you will end up living in a country like one of those!!!! Layoutshooter