Truck Drive Away Service

[DaveO]

I have a couple of clients that are contracted to a Truck Drive Away Service. They transport new and used semi tractors around the country. You probably have seen several tractors stacked up often towing a smaller vehicle behind them on the highway. They are responsible for their own fuel and their own transportation in between jobs. This means they have the fuel expense for the transported truck and also mileage on their personal tow behind vehicle. The personal vehicle, usually a pickup truck, is driven part of the time and towed part of the time. The question is what is the deduction for the miles the truck is towed? There is certainly wear and tear on the vehicle especially on the tires and drive train. There is also depreciation since the miles continue to roll on as it’s towed.

Both drivers say the company they are contracted to told them there was a PLR that approved a deduction for half the federal mileage rate. This seems reasonable to me but I wondered if anyone else has encountered this?

[fliszt]

No one

has responded to your post, so thought I'd offer an opinion. I don't know your answer. But as I think outloud, if someone pushed my car for miles and miles, would I be elgible for IRS mileage? Or if I towed my car do I get double IRS mileage? Or do the tractors that are being hauled get some type of "mileage" since they are being exposed to the elements while being driven?
I hope someone that has the answer will post now that Larry's all wet.

[erchess]

I could not find anything in CCH Tax Tools

but I agree that what you are hearing sounds reasonable. On the other hand "It sounds reasonable to me and an internet buddy" is not a good thing to say when the Examiner asks the basis for a position one has taken. I searched in vain for a PLR to the specified effect in CCH Tax Research Library but then I seldom find what I want there.

[DaveO]

Thanks for your opinions

I didn't have access to anything more than the internet and the Tax book which are both fine resources. I was hoping for a PLR, but considered the possibility that it was a truck driver rumor at the time.

However, when you consider the facts I think it's still a reasonable solution. Anyone who has towed a vehicle to any extent can readily attest to the fact that the wear on tires and drive train is every bit as much as if the vehicle was driven, maybe more so. Running up close behind the big rig insures a continual pelting with road debris as well.

I appreciate your efforts.

[David1980]

Anyone who has towed a vehicle to any extent can readily attest to the fact that the wear on tires and drive train is every bit as much as if the vehicle was driven, maybe more so. Running up close behind the big rig insures a continual pelting with road debris as well.

Seems like for sure you could deduct the amounts paid for tires/repairs as an actual expense deduction.