taxi driver

[ardi600]

i have client who is taxi driver. he purchase the taxi. my assumption is that i can depreciate the cost of the car, and also use milage since it is his own car(taxi). correct?

[BOB W]

Can't depreciate and use mileage in the same year. Gas, maintenance and repairs only with depreciation.

[ardi600]

he has

over 40,000 miles used on his taxi, so i guess i better use milage. now, if he would not have bought the cab, my understanding is he could not have used milage. correct?

[Gary2]

You can't use the standard mileage rate for a car for hire, period. It doesn't matter who owns it, whether new or used, etc.

[dtlee]

You can't use the standard mileage rate for a car for hire, period. It doesn't matter who owns it, whether new or used, etc.

I believe that this changed effective with 2011.

[Gary2]

I believe that this changed effective with 2011.

You're right. I stand corrected.

Too bad I didn't take EA SEE Part 2 last year; I guess I'd better review the 2011 changes more carefully before scheduling the exam this year.

[dtlee]

You're right. I stand corrected.

Too bad I didn't take EA SEE Part 2 last year; I guess I'd better review the 2011 changes more carefully before scheduling the exam this year.

I had previously assumed that you had already assumed EA status based on your clear and knowledgeable posts. I am sure you will have no trouble with Part 2 once you prepare for it.

[Gary2]

Thanks. I'm not worried about the exam, I'm worried about finding the time.