1099-MISC, something required by payer

[powerage]

Live, prior year return I did today, 1099-MISC, medical courier, and though the client had actual expenses written and documented, it was far more to his advantage to use standard mileage, which he also kept records of.

A question though. His written records showed car wash expenses. As far as I know, car washes are not deductible as an expense. When I told him I could not allow the deduction if he was taking actual expenses, he told me that is was required by the company paying his 1099-MISC wages that the outside of his car is to be clean.

If your car is required to be clean at all times, should that not be deductible, under actual expenses?

Also, I would almost think that this person could be classified as an employee, instead of an IC, just because the company he works for tells him something has to be a certain way.

[solomon]

Regarding IC vs EE, see RR 87-41. If using actual expenses, allocate car washes based upon percentage of business use.

[S T]

Actual Expenses

As Soloman posted, I do believe Car Washes are allowed under an Actual Expense method and would then be pro-rated out based on the business percentage. Make sure your t/p has receipts.

As far as the IE vs EE, you will have to check with your State Law to see what they say and then also check the Federal rulings that Solomon posted. When in doubt you can always complete the SS8 form for a ruling.

I know a lot of employer's skirt the issue due to costs of payroll and Work Comp.

There was a 2006 Calif Court Case on Courier Service. It is too big to upload to the Board, but if you want a PDF file, private email me and I will forward to you.

Sandy

[solomon]

If you pursue the SS-8 route, then you might want to file Form 8919. However, your client will have an angry employer.

[ChEAr$]

And

If you pursue the SS-8 route, then you might want to file Form 8919. However, your client will have an angry employer.

be soon unemployed.

BTW, car washes are ordinary and necessary and included in the category
"Repairs and maintenance."
Although I'm in the South with no snow or salt on roads, I remember living in snow country, and it's evident that cars have to be washed to get corroding agents off the body.

[OtisMozzetti]

Actual expenses of vehicle use

...
BTW, car washes are ordinary and necessary and included in the category
"Repairs and maintenance."
Although I'm in the South with no snow or salt on roads, I remember living in snow country, and it's evident that cars have to be washed to get corroding agents off the body.

So, the asserted requirement by the customers that medical courier cars be kept clean looking is only an additional argument for those car washes to be part of the actual expenses of vehicle use.

[Lion]

Auto Expenses

Your client needs to keep a mileage log whether or not he uses standard mileage rates, because even the actual expenses are still based on the business percentage of total mileage.

Car washes are part of maintenance using actual expenses.

Using SMR, you can still take three additional car-related deductions: parking & tolls, property tax, and finance charges (again, the biz percentage only).

[FEDUKE404]

No washes with standard mileage rate

If client is taking the standard mileage rate, the car washes are included as maintenance along with everything else (except taxes et al) in the fixed per mile rate.

While having the car "clean" (presentable?) might be a requirement, it doesn't bear much more relevance than the client must be attired in a coat and tie. We've all been asked that question!

There might be some wiggle room if the employer puts in writing the car must be washed once per week, or something similar, but otherwise there is no deduction. What does the guy do on a rainy/snowy day.........wash the car before he visits each client??

Oh yes: Playing pure Devil's Advocate - does the guy have receipts for each of those car washes?!?

FE

[newbie]

Washing the car would be routine maintenace and as pointed out by others, included in actual and taken based upon the percentage of use or if standard mileage taken it would be included in the standard mileage.

[taxea]

If you are using actual expenses then, yes, car wash/detailing would be under maintanence/repairs and is a usual/necessary expense in many businesses (i.e. realtor).

However if mileage works better for the client then I submit that you would not deduct the car washes separately. taxea

[powerage]

Thanks y'all for the help. He did have a mileage log because he has been doing this job for a few years, and standard mileage was the much better benefit.

I really was unsure about the car washes, because I have never had this before, and nothing really goes into detail about what car expenses are allowed, compared to medical deductions.