Hawkeye
Seasoned Expediter
Today I spoke with my accountant as to the subject of tax deductions for the fleet owner vs. fleet driver. During this discussion, he informed me that the owner can take the deduction for mileage while making the driver pay for the fuel; the cost of fuel will be a deduction for the driver. Here is the problem: the owner MUST subtract the cost of fuel that the driver pays from the total deduction for the mileage.
Example: owner is allowed to deduct $60,000 for mileage, but his driver purchased $24,000 in fuel. The owner MUST subtract the $24,000 from the $60,000, leaving a total of $36,000 that the owner MUST use for his mileage on his tax return.
I trust my accountant since he has a master's degree in accounting and a licensed CPA. I thought that I would share this info for those who did not know this rule.
Example: owner is allowed to deduct $60,000 for mileage, but his driver purchased $24,000 in fuel. The owner MUST subtract the $24,000 from the $60,000, leaving a total of $36,000 that the owner MUST use for his mileage on his tax return.
I trust my accountant since he has a master's degree in accounting and a licensed CPA. I thought that I would share this info for those who did not know this rule.
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