Taxicabs

[Bird Legs]

Have a client who purchased a car to operate as a taxicab. He pays terminal fees,
City airport fees etc. Also buys own gas and pays for the maintenance of vehicle.
When asked if this particular vehicle was used 100% for business, reply was, "of course".
When I looked out the front door of my office there it was. Of course, this is business.
He came to see me re his tax return.
Question: Is the owner, driver, of the cab subject to the same rules as far as tracking mileage, business & personal, as any other business car owner? such as date, destination, begining mileage, ending mileage etc.?
Or can we skip it and just write everything off pertaining to cab? Ins. Gas, repairs etc.
My understanding is that you cannot use mileage. Must use actual expense.

[veritas]

As I recall Taxicabs are not subject to IRC 280F

[oceanlovin'ea]

Taxi Drivers

Speaking of taxi drivers, a man who lived near my daughter told her to ask me about doing his tax returns. He hasn't filed in 10 years. Has no idea how much he made, because he just spends it as he gets it. Has receipts for expenses, at least some. He leases cab from a company. He makes good money in winter months but slim pickin's in summer.

I didn't want to get involved. Told him to leave it alone. IRS would probably assign some amount of income to him. He would end up owing money for each year plus penalties and interest.

Anybody know what IRS would do in a situation like that?

[Brian EA]

Speaking of taxi drivers, a man who lived near my daughter told her to ask me about doing his tax returns. He hasn't filed in 10 years. Has no idea how much he made, because he just spends it as he gets it. Has receipts for expenses, at least some. He leases cab from a company. He makes good money in winter months but slim pickin's in summer.

I didn't want to get involved. Told him to leave it alone. IRS would probably assign some amount of income to him. He would end up owing money for each year plus penalties and interest.

Anybody know what IRS would do in a situation like that?

PUT HIM IN JAIL AND THROW AWAY THE KEY

[Bird Legs]

Veritas

Does this mean that the cabbie does not have to keep mileage records of any kind? And that the vehicle is not listed property.
Thank you very much for your response.
This is my first experience with a cabbie.

[veritas]

On a somewhat related note. I don't like prepapring returns for taxi ppl. They get big bucks in tips and don't like to report.

Taxis are not subject to depreciation limits under 280f or any other listed property rules. Pg 10-6 of TTB