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In a surprisingly favorable Private Letter Ruling the IRS acknowledged that the standard mileage method of reporting business use is permissible whether or not the taxpayer owns the car. Noting that the standard rate has been allowed for leased vehicles since 1998, it said borrowing a car is essentially a zero-basis lease transaction. The ruling was requested by a taxpayer who had taken his mother’s car without permission after she entered a nursing home. (Private Letter Rulings can not be cited as precedent but indicate the IRS position on issues not addressed by regulations.)
In a surprisingly favorable Private Letter Ruling the IRS acknowledged that the standard mileage method of reporting business use is permissible whether or not the taxpayer owns the car. Noting that the standard rate has been allowed for leased vehicles since 1998, it said borrowing a car is essentially a zero-basis lease transaction. The ruling was requested by a taxpayer who had taken his mother’s car without permission after she entered a nursing home. (Private Letter Rulings can not be cited as precedent but indicate the IRS position on issues not addressed by regulations.)
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