I recently spoke with a van O/O. He said he didn't save gas receipts because he used "mileage" as an expense. I understand you can use mileage for depreciation, but I'm not sure what he is talking about using mileage as an operating expense. Can you enlighten me more?
Thanks.
OldProf,
It is true that you do not need to keep reciepts if you use the standard Mileage rate for the deduction on a cargo van. But it is suggested that you sill keep those gas reciepts. The mileage would be deducted from you Business Sch C as a truck Expense but must be filled out on a different line they on line 9, for the caluclation, it must also be listed on your depreciation listing for the mileage to calculate.
So it would be listed on your depreciation, but do not put an amount of $$$$ that you paid for the van. otherwise in the calculation it will take the depreciation and mileage, if you do that you will definitely be audited. then they (IRS) would want to see the fuel tickets to substaniate the mileage deduction., Only unless you sell your vehicle you would have to reclaim all the mileage allowance that was used as a deduction over the years. The normal time that you may use the stamdard mileage deduction is 5 years. No other depreication will be figured except mileage.
Frank
