Dead Head miles a Deduction?

[RLENT]

Fuel, insurance (liability, cargo, bobtail, All Repairs: Tires, Parts, labor and any other items that pertain to the vehicle itself are NOT DEDUCTIABLE IF USING THE STANDARD MILEAGE RATE

Ahhh ... don't think that's quite correct .... for one, I believe that if the vehicle is financed, any interest paid during the year for financing is deductible is it not ?

Also additional equipment that did not come with the vehicle from the factory (an inverter, generator, load securement gear, and other similar items) should probably be deductible .... correct ?

 

[OntarioVanMan]

whilst I do NOT claim the likes of say windshield wash fluid and any cleaners as they could be construed as maintenance items ....I do claim the carpet mats, the ice for the cooler, the toaster, microwave, any sheets, pillows.. i do as well....

 

[Crazynuff]

Does this mean if the driver pays for fuel and the owner claims the per mile deduction the driver can't claim fuel expenses ? Are drivers informed of this before contracting ?

 

[prepaid]

1. If you do the per mile deduction you can not change each year you will have to stay with per mile deduction.
2.If you have a office dedicated to your business at your home you can deduct the miles from when you leave to until you get back.
3.this is where all mistakes are happening if you don't have a office you can not use the miles to your home.so if your last load was to knoxville,tn and you deadheaded home to detroit,mi and then you went to bay city,mi to pick up another load you can deduct the miles from knoxville,tn to baycity,mi.
4. Each year the mileage rate changes so keep in mind .58 this time and it could go up or down each year so you will have to find out

 

[Pilgrim]

Hi All,

Again there seems to be confict in which Deduction is Correct for your type of Truck, Here is the actual breakdown of what can take the Standard Mileage Deduction!!!!

All vehicles Over the Road UP TO 10,000 LBS. can use the Standard Mileage Rate.
this includes all miles traveled except for personal use. Average 15% DEDUCTION UNLES YOU KEEP EXACT MILEAGE USE FOR PERSONAL.

I'm going through an audit right now - is there a specific section of the tax code we can use to substantiate this 15%? Also, in an earlier post there was a question regarding the deduction of interest on financing the vehicle - can this be deducted in addition to the standard mileage rate? I've always had the understanding that finance charges/interest was NOT allowed if the standard mileage method is used.

 

[RLENT]

I'm going through an audit right now

You may wish to read the post of mine in the thread linked below, at the end of the thread, and check out the accompanying links in it:

Re: The IRS cometh

is there a specific section of the tax code we can use to substantiate this 15%?

Not sure offhand.

Also, in an earlier post there was a question regarding the deduction of interest on financing the vehicle - can this be deducted in addition to the standard mileage rate?

From Publication 535, Business Expenses:

"Interest You Can Deduct

You can generally deduct as a business expense all interest you pay or accrue during the tax year on debts related to your trade or business. Interest relates to your trade or business if you use the proceeds of the loan for a trade or business expense. It does not matter what type of property secures the loan. You can deduct interest on a debt only if you meet all the following requirements.

You are legally liable for that debt.

Both you and the lender intend that the debt be repaid.

You and the lender have a true debtor-creditor relationship."

I would keep in mind that if some portion of the vehicle's use is personal, the IRS would probably want you to apportion the interest accordingly. (This is actually covered in Publication 463, Travel, Entertainment, Gift, and Car Expenses)

I've always had the understanding that finance charges/interest was NOT allowed if the standard mileage method is used.

Covered in Publication 463 I believe - it ain't no fun, but it is worth spending a few hours and going thru and reading the applicable portions of it (and any other IRS publications, forms, etc. which are relevant to you)

You may wish to consider filing amended returns for past years and claiming it - they may owe you money