Remember the 2010 mileage rate is less

[Fkatz]

2010 Standard Mileage Rates

The standard mileage rate for all business miles has decreased to 50 cents a mile. Effective for transportation expenses paid or incurred on or after January 1, 2010. (Rev Proc 2009-54)

• The rate for charitable miles remains at 14 cents a mile.
  
  
• The rate has decreased to 16.5 cents per mile when computing deductible moving expenses.
  
  
• The rate has decreased to 16.5 cents per mile when computing deductible medical expenses.

DON'T YET KNOW WHAT IT WILL BE FOR STARTING JANUARY 1, 2011.
FRANK

 

[jjoerger]

Thanks Frank.
Since I am working on getting all my documents together for the end of the year I will add that into my spreadsheet.

 

[greg334]

Just a reminder, it only applies to vans.

 

[chetjester]

As a new van driver, let me try to understand what you are saying. Instead of deducting my actual fuel costs, I can deduct $ .50 per mile for all the miles I drive this van for expediting? And, do I still qualify for per diem?

Thanks.

 

[greg334]

I think it applies to owners, do yo own a van?

And if not why?

They are cheap.

 

[Dreamer]

Depends Greg.. for some of us, buying a van was just as big a hurdle as a truck is for others.

Dale

Posted with my Droid EO Forum App

 

[chetjester]

Don't and won't own a van or any other truck. I'll just keep deducting fuel and all the other expenses.

 

[Fkatz]

Thanks Frank.
Since I am working on getting all my documents together for the end of the year I will add that into my spreadsheet.
__________________
Jim and Shayne Joerger
Owner Operators of D7670
FedEx CC

Just a reminder, it only applies to vans.
__________________
Greg
1999 Freightliner FL70
Professional International Traveler

As a new van driver, let me try to understand what you are saying. Instead of deducting my actual fuel costs, I can deduct $ .50 per mile for all the miles I drive this van for expediting? And, do I still qualify for per diem?

Thanks.
__________________
Chet Merithew
A. Blair Enterprises
Sprinter Driver
I think it applies to owners, do yo own a van?

And if not why?

They are cheap.
__________________
Greg
1999 Freightliner FL70
Professional International Traveler
Depends Greg.. for some of us, buying a van was just as big a hurdle as a truck is for others.

Dale

Don't and won't own a van or any other truck. I'll just keep deducting fuel and all the other expenses.
__________________
Chet Merithew
A. Blair Enterprises
Sprinter Driver
HI ALL, AND A HAPPY THANKSGIVING TO ALL
I have posted all of the questions and answers that you guys asked in reference to the Mileage Rate Use.

If you drive for yourself, or an owner you are legally allowed to take the MILEAGE RATE AND THE PER DIEM,

Reason: THE PERSON WHO PAYS FOR THE FUEL IS ONLY THE PERSON THAT CAN USE THE DEDUCTION

If you use the MILEAGE DEDUCTION you cannot deduct the following:

1. Any fuel purchased (except Reefer)
2. Maintenance Grease, Oil, and Filters
3. All Repairs
4. Tires
5. All insurance cost except (Occupational, and
Workmens Compensation)

The mileage deduction is availabile to drivers who are under
If you own a Pick-up with a 10-12ft. box and it GVW is less 10,000 lbs or less, it also qualifies for the deduction.
Rules and regulations concerning the mileage Rate

YOU MUST HAVE ACCURATE RECORDS OF YOUR DEADHEAD, LOADED AND UNLOADED MILES.

I have a form that you can fill out for every trip available to you for free, If you want one you can request one by e-mailing me direct at [email protected]

ALSO IF YOU USE THE MILEAGE RATE YOU MUST PRO RATE A PERCENTAGE TO PERSONAL USE. 10-20% This is in the case that you have no other vehicle while you are at your home residence, and you live in your Van full time.

DEPENDING ON THE TOTAL MILEAGE THAT IS RECORDED.
The IRS does not like mileage in exess of 90,000 miles.
If you do put on more than 90,000 take 15% off the top.
if you put on more that 100,000 miles make sure you come under the 90,000 some how. this is for your protection from being audited. but,There still might be a chance that you will be audited, right now that is very good possibility,

They are auditing small business at the rate of 6000 taxpayers the first year, and will be increasing it each year thereafter.

Now as far as the Per Diem is concerned , it would still apply to the persons that are the drivers only, and not the owners.

OWNERS WITH SUBCONTRACTORS CANNOT TAKE THE PER DIEM OR THE MILEAGE DEDUCTIONS

Plus you must use the breakdown of 1/4 days on the time that you leave your home to get your load. and when you arrive at home for time off.

These are the 2 Major deductions a Van driver can deduct. Use them wisely.

If you are audited for the mileage rate you can always refer to CCM Memo 97-40,
If you need a copy of this memo it is available for $10.00 and can be attached to your e-mail. payable by credit card. and is deductible as professional fees.

Since this Memo has been written it has not be revised.
And as far as the mileage is concerned. A copy of your lease contract with the company must be presented and highlighed where it states.
AND THE XXXXXX COMPANY HAS EXCLUSIVE USE OF SAID VEHICLE.

Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]

Providing Professional Accounting Services and Income Tax Preparation

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.

 

[Trailblazer]

Frank,

Back on 2-21-10 you stated the standard mileage deduction was $.505. Is it $.50 or $.505.

Thanks,

Jim

 

[greg334]

So Frank I asked a question to my accountant a while ago about this and I will ask the same question to you for others to understand.

If I as an owner do not pay for fuel but I pay for

• Maintenance
• Repairs
• Tires
• Licensing
• Vehicle insurance cost

So would the IRS allow the use of the mileage rate for the driver even though their operating costs do not include any other item other than fuel?

 

[highway star]

I would say no, you can't deduct the mileage rate for a vehicle you don't own. Am I right?

 

[greg334]

Well Frank says a driver can if they pay for fuel but ... I will wait for an answer.

 

[Fkatz]

hi all,

It seems that there is a question in reference to the standard mileage rate for Drivers who are leased on with an owner and do not own the vehicle.

The owners might be paying for all the other expenses, mechanical, tires, maintenance, they cannot take the mileage rate due they are not paying for the fuel,
if the owner owns more than 5 cargo vans used at the same time he cannot take the mileage period. Because he is taking the other expenses that you listed above.
Remmenber you are the one paying for fuel, and putting on the mileage.

if you are on a 60/40 split, and pay for fuel you are entitled to and suppose to receive the following:
1. 60% of the mileage.because that is your compensation
2. Receicve 100% of the Fuel Surcharge, The owner is not suppose to hold back any surcharges at all. it covers the cost of the increase in the price of fuel to make up the difference in the load rate, and what it is suppose to be.

You can ask CPA, other tax preparers and Accountants, if they are not up on the laws, they will tell you that you cannot take the mileage.
Others will

Call any of the Trucking Accountants that are listed on the internet and see what they say. Make sure they cater to the transportation industry only
Or read Publications 17, 334, 463 from the IRS web site and it will give you a better idea of what can and cannot be taken.
Frank