Client has a partnership with her brother-in-law in a daycare business. He owns the house the daycare is run out of. She runs the daycare. They are 50/50. The business shows a loss of about $130, and she had guaranteed payments of about $11545.
She wants to take a deduction on her personal taxes for things she wasn't reimbursed for. Such as,10,000 miles she drove (for runs to Target for supplies, the grocery store for the daycare food, dropping off and picking up some of the daycare kids, and so on). She doesn't have a mileage log, but says she'd have no problem reconstructing one (?). She has $50 cell phone bill that the business normally pays for, but she paid this one bill with her personal credit card being as the daycare didn't have a credit card to make the payment over the phone. She has grocery bills and Target bills (all for things FOR the daycare).
What do you think about all of this? Do I use these miles somehow and how exactly do I go about it? Her past preparer (her uncle) took her mileage for 2005 on Form 4562 Depreciation. But there's no further information given to show where that mileage deduction went on the form or that she even got to use it.
Looks as if he gave them a fancy printed up sheet listing a mileage deduction amount, but nowhere on the return is it reported. It's not under Schedule A, Misc. Itemized either. I feel like I am missing something here.
She wants to take a deduction on her personal taxes for things she wasn't reimbursed for. Such as,10,000 miles she drove (for runs to Target for supplies, the grocery store for the daycare food, dropping off and picking up some of the daycare kids, and so on). She doesn't have a mileage log, but says she'd have no problem reconstructing one (?). She has $50 cell phone bill that the business normally pays for, but she paid this one bill with her personal credit card being as the daycare didn't have a credit card to make the payment over the phone. She has grocery bills and Target bills (all for things FOR the daycare).
What do you think about all of this? Do I use these miles somehow and how exactly do I go about it? Her past preparer (her uncle) took her mileage for 2005 on Form 4562 Depreciation. But there's no further information given to show where that mileage deduction went on the form or that she even got to use it.
Looks as if he gave them a fancy printed up sheet listing a mileage deduction amount, but nowhere on the return is it reported. It's not under Schedule A, Misc. Itemized either. I feel like I am missing something here.
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