Self Employed Limousine Service

[Aviator]

Have a client who started his own limousine service in year 2005. He owns and operates three (limousine) vehicles. These vehicles do not consititue a "fleet" operation as I understand the rulings, and they are not of course taxis. His claim is that he obviously only uses the vehicles for business and that is understandable since who would drive one of these limos to do the weekly family grocery shopping.

Would anyone offer advice on how to document and report the expenses associated with these business assets? While it appears they should be handled on a case by case basis regarding mileage useage, actual expenses, etc., there seems to a uniqueness to this form of business. For example, what about commuting miles from say, his home to the airport to pick up a passenger, or from his home to pick up a bridal party? (He does not qualify for an office in home either.) If it has to be a vehicle by vehcle expense computation so be it, but I know he will not understand because he considers every mile he drives these limousines to be a business mile.

Thank you in advance for your input.

Aviator

[LawrenceGR]

Actual Expenses

If he started this bus in 05 you could always use the actual expense method while it may be a ton more work, this could be the answer. Wait to see what others say, I'm sure there will be more ideas.

[OldJack]

It would appear that he is using his residence to park and for storage of the business equipment, therefore any use from such storage would be business use if not a personal use trip. It also appears that he has his business office in the home even though it maybe does not qualify for deduction so there would be no commute other than the walk to the vehicles.

Although vehicles used to transport persons
or property for pay or hire and vehicles rated at
more than 6000-pound threshold are not
passenger automobiles, they are still “other property used
for transportation” (discussed next). They are therefore
listed property items subject to the special rules for such
property other than the passenger automobile limits and
rules.

[jainen]

a taxi

Unless he is parking in the spare bedroom, the office in home rules don't apply. Mileage from his normal parking area to pick up clients is not personal use. Standard mileage rate is not allowed. A limo may be a little fancier than some, but it is still just a vehicle for hire, i.e., a taxi.