Medical Mileage Deduction

[Calvin]

Elderly client is driven to medical appointments by family member and reimburses family member at .55/mile for use of their vehicle. What, if anything, would you deduct as transportation costs to medical appointments? Amount actually paid to family member or mileage at .235/mile?

Thanks!

[Uncle Sam]

The $ 0.555 is BUSINESS mileage rate, not medical mileage rate.

[ChEAr$]

Elderly client is driven to medical appointments by family member and reimburses family member at .55/mile for use of their vehicle. What, if anything, would you deduct as transportation costs to medical appointments? Amount actually paid to family member or mileage at .235/mile?

Thanks!

That's awfully generous of him, 55 cents a mile.
However to your question, I would compute at amount actually paid as long as it did not also include trips to the grocery store, local houses of pleasure, etc etc.

[RitaB]

Actual fare

Elderly client is driven to medical appointments by family member and reimburses family member at .55/mile for use of their vehicle. What, if anything, would you deduct as transportation costs to medical appointments? Amount actually paid to family member or mileage at .235/mile?

Thanks!

I would also consider this the same as actual fare paid for a taxi, ambulance, bus, etc. and deduct the actual amount paid.

http://www.irs.gov/taxtopics/tc502.html

[Gary2]

Hopefully, the family member is reporting that amount as income.

While the client's ability to take a deduction shouldn't be dependent on the driver's proper handling of the income, the fact that they are related could cause additional scrutiny. Will the client be able to prove the amount paid? Prove that it was intended as payment for services, and not merely a convenient reimbursement for expenses, with any excess considered a gift? Does the client get receipts or pay by check?

[RitaB]

Good points

Good points, Gary. I was thinking about this last night, and if the family member is waiting through appointments with the patient, and I assume he is, 55 cents a mile is not excessive. At least where I live, you can figure on one hour wait, 5 minutes with doctor.

But, yes, pay by check.