Where in an IRS pub or elsewhere can I find the rules for an over-the-road truck driver regarding actual expenses versus standard mileage? One of our associates insists that these drivers as well as other heavy-duty trucks can use the standard mileage method and I'd like to find something official regarding this.
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If you want something authoritative, forget the publications. Are you speaking of independent contractors or employees? -
No 'qualified non-personal use vehicle' can use the standard milage method. They are assumed to be 100% biz use, and must use actual.Comment
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For something to read, see Rev. Proc. 2000-48. From that RP:
Note: automobiles, vans, pickups, or panel trucks..01 Standard mileage rate . The term “standard mileage rate” means the applicable amount provided by the Service for optional use by employees or self-employed individuals in computing the deductible costs of operating automobiles (including vans, pickups, or panel trucks) owned or leased for business purposes, or by taxpayers in computing the deductible costs of operating automobiles for charitable, medical, or moving expense purposes.Comment
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What Purpose?
Not to insult anyone, but why would a client wish to use the standard mileage rate when the actual operation of a rig is probably triple that amount? Also, no danger of a rig being classified as "listed property." Maybe the client has not saved sufficient records to use actual operation.
There are OTR situations where some standard mileage would be appropriate for a passenger vehicle. Driving your personal vehicle to a stranded unit, rendezvous with other drivers, etc.Comment
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I had to wonder that myself.
My guess is either the taxpayer has terrible records and doesn't care that they're cheating them self out of a huge deduction. (Or does SMR put them into EIC range?)
Or the preparer doesn't want to bother putting in the actual expenses, calculating depreciation, etc... It's easier to just plug in 1 number. Especially if the number was made up anyway.Comment
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It's the latter and the associate insists there's nothing that says she can't use mileage for her semi drivers.Comment
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But if the reason for doing this is laziness then do you really expect the preparer to look up the tax rules? With any luck their clients will get IRS letters and go somewhere else and put that preparer out of business. Hopefully to somewhere smart enough to do actual expenses and get more money for their customers.
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I thought we were talking semi drivers. Not only is it not ok, but 50 cents a mile when my semi drivers spend about $30000 just in fuel? Not to mention depreciation, repairs, maintenance, tires????
fer chrissakes, I hope her clients talk to their fellow drivers and find out how much she's been stiffing them.
And the drivers I've prepared taxes for get sheets from their contracting companies with fuel costs & alot of other expenses paid from their gross. sheesh.Comment
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Maybe [charitably...] there was a misunderstanding and we should be discussing the standard per diem rate for meals and etc. rather than the standard per mile rate....
The argument that "nothing says you can't" didn't fool my boss back in 1970. And I don't think it's gotten any better over the years....Comment
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And they get a different per diem rate too. and a different percentage. Is she too lazy to look that up too?Comment
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