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    Long Haul Truckers

    I have a new client this year, and her husband is a Long Haul Trucker and will be reporting as a Schedule C. He owns his own truck and trailer. For expenses he has already $62,876.27, this includes Fuel, LTT Reg, Repairs, Tires, Tolls. Tuck and Trailer cost was $62,289.00.
    My question is this, can they take Mileage?

    #2
    No. Depreciate and actual expenses

    Chris

    Comment


      #3
      See The Tax Book starting at 10-3
      Always cite your source for support to defend your opinion

      Comment


        #4
        you need to take mileage OR actual expenses not both on schedule C

        Comment


          #5
          Originally posted by taxmom34 View Post
          you need to take mileage OR actual expenses not both on schedule C
          Are you suggesting you can take standard mileage rate on a tractor/trailer?

          Rev Proc. 2010-51 limits the use - I don't think "mileage" is permitted for the original poster.
          SECTION 3. DEFINITIONS

          .01 Standard mileage rate . The term “standard mileage rate” means the amount the Service provides for optional use by taxpayers to substantiate the amount of—

          (1) Deductible costs of operating for business purposes automobiles (including vans, pickups, or panel trucks) they own or lease, and

          (2) Deductible costs of operating automobiles for charitable, medical, or moving expense purposes.

          Comment


            #6
            Originally posted by New York Enrolled Agent View Post

            Are you suggesting you can take standard mileage rate on a tractor/trailer?

            Rev Proc. 2010-51 limits the use - I don't think "mileage" is permitted for the original poster.
            SECTION 3. DEFINITIONS

            .01 Standard mileage rate . The term “standard mileage rate” means the amount the Service provides for optional use by taxpayers to substantiate the amount of—

            (1) Deductible costs of operating for business purposes automobiles (including vans, pickups, or panel trucks) they own or lease, and

            (2) Deductible costs of operating automobiles for charitable, medical, or moving expense purposes.
            What I was asking if the mileage was higher than the truck and trailer, are you allowed to take mileage?

            Comment


              #7
              Originally posted by New York Enrolled Agent View Post

              Are you suggesting you can take standard mileage rate on a tractor/trailer?

              Rev Proc. 2010-51 limits the use - I don't think "mileage" is permitted for the original poster.
              SECTION 3. DEFINITIONS

              .01 Standard mileage rate . The term “standard mileage rate” means the amount the Service provides for optional use by taxpayers to substantiate the amount of—

              (1) Deductible costs of operating for business purposes automobiles (including vans, pickups, or panel trucks) they own or lease, and

              (2) Deductible costs of operating automobiles for charitable, medical, or moving expense purposes.
              The verbiage I recall is something along these lines:
              ... the IRS considers a semi-truck to be a qualified non-personal-use vehicle. As a truck driver, you must claim your actual expenses for vehicles of this type. So, you can’t use the standard mileage method....
              (Source is from an Intuit discussion board, not cited here.)

              Comment


                #8
                Originally posted by Absoluttax View Post
                I have a new client this year, and her husband is a Long Haul Trucker and will be reporting as a Schedule C. He owns his own truck and trailer. For expenses he has already $62,876.27, this includes Fuel, LTT Reg, Repairs, Tires, Tolls. Tuck and Trailer cost was $62,289.00.
                My question is this, can they take Mileage?
                Your verbiage is confusing people. The expenses you list are generally referred as actual expenses in tax speak. Mileage generally refers to 54.5 cents per business mile which doesn't apply to tractor/trailer.

                As long as the actual expenses are reasonable and substantiated, it does not matter that they are more than the original cost of equipment.

                Comment


                  #9
                  Lets take this I step further. Since TP is on sch c Doe tp owe tax to each state he drives in. This would be a bookkeeping nightmare at best. Maybe similar to some of those ptps that have income allocated to how many states?

                  Comment


                    #10
                    Originally posted by TAX4US View Post
                    Lets take this I step further. Since TP is on sch c Doe tp owe tax to each state he drives in.
                    No, employees and Independent Contractors only pay tax to their resident state (Amtrack Act of 1990?).

                    https://www.law.cornell.edu/uscode/text/49/14503
                    https://www.law.cornell.edu/uscode/text/49/31132

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