Standard miles and actual car expense

[Accountable2Him]

Can you take the standard deduction and actual car expense? I believe you can't . It is one or the other.
I see the last years many, many years returns show the standard mileage and actual car expense.

Now the client is having a big fit because he owes tax money this year.

Thank you for all your help.

[zeros]

Standard Mileage or Actual Expenses

Nice deal taking both. Must get a large rerund.

[Gary2]

Note that you generally have to provide the mileage information even when taking actual expenses, in order to properly determine business use percentage.

Sorry if you're already aware of this, but it's hard to be sure from your wording.

[Jiggers]

Can you take the standard deduction and actual car expense? I believe you can't . It is one or the other.
I see the last years many, many years returns show the standard mileage and actual car expense.

Now the client is having a big fit because he owes tax money this year.

Thank you for all your help.

No, you can't. It is "either or", but not both.

[mastertaxguy]

Standard or actual expenses--a hybrid method available?

Do not overlook what is found at TTB 10-5, lower right column. Often I tell clients that "we" are using the hybrid vehcile expense method: standard mileage rate for the year, plus business percentage of interest expense for self employed individuals (not an employee), business parking fees and tolls, and business percentage of personal property taxes. I suppose for those in states there vehicles are not subject to a personal property tax the annual or whatever registration fee would be an expense on schedule C.

Of course the biggest issue is a mileage log. Or lack thereof.

[appelman]

It's not a hybrid.

It's just the standard mileage rate with the perqs that are sometimes overlooked/

[Accountable2Him]

Thank you everyone for confirming all the information. I was looking at a return done by cpa and I am not. I was told by the client they must know what they are doing. This was my first year with them.

This tax season is getting to be one big pain.

I had a client that did not tell me his student loans were in default and they took his refund. Now I get stuck!!!

[Lion]

Tell your client that CPAs do not necessarily specialize in taxes, but all EAs specialize in taxes.

Enrolled Agents are America's Tax Experts. EAs are the ONLY federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS.

-- quoted from NAEA, National Association of Enrolled Agents, powering America's tax experts.

[Burke]

. I was looking at a return done by cpa and I am not. I was told by the client they must know what they are doing. This was my first year with them.

I guarantee you the client most likely filled out the questionnaire/organizer they sent him, giving actual expenses and the mileage; and the [data entry clerk] simply input all of it. What I can't figure out is, how did the software do it? It should have taken one or the other.

[bgiez]

I guarantee you the client most likely filled out the questionnaire/organizer they sent him, giving actual expenses and the mileage; and the [data entry clerk] simply input all of it. What I can't figure out is, how did the software do it? It should have taken one or the other.

Oh, it could happen. I was new to Drake last year and ended up amending a few returns where both were taken because I didn't complete one box or another, and didn't notice until after I filed, of course. I forget what exactly which box it was - think it was Auto vs Sch C on the 4562 screen for the vehicle, even though I checked the "force standard" box on the Auto screen. I had used my previous software (Taxworks) for 10 years. It's hard to teach an old dog new tricks.

[Accountable2Him]

Thank you for that reminder. When I first started doing taxes I was working with EAs. They the Tax Experts!!. I am trying again for the CPA and if does not work out I was doing to do EA exam.

Have a nice day.

Enrolled Agents are America's Tax Experts. EAs are the ONLY federally licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS.

-- quoted from NAEA, National Association of Enrolled Agents, powering America's tax experts.[/QUOTE]

[geekgirldany]

I got a new client Thursday and they had taken standard mileage and depreciation on the auto. Will just have to point it out to the client and let him decide on amending it.

I really like what Lion posted on EAs. I will have to use that.