anyone good at taxes or any accountants?

[tkim]

at work, i get reimbursed mileage while i travel on the job. my car is about to under as well. so instead of buying, i was thinking about leasing. if i were to lease a car, could i write that off even though i get mileage compensation? or is there another way to do it? thanks.

 

[vi edit]

I *beleive* the only way you could write it off is if you were an independent contractor and responsible for your own taxes and take the deduction that way. Since your company is reimbursing you, there is no way to "double dip".

 

[vi edit]

look here also

 

[joepa99]

Better yet, get your company to lease the car...

 

[CPA]

Originally posted by: vi_edit
I *beleive* the only way you could write it off is if you were an independent contractor and responsible for your own taxes and take the deduction that way. Since your company is reimbursing you, there is no way to "double dip".

Pretty much right on.


<-----I am what I am.

 

[tkim]

thanks vi.... i understand better now. i would rather not get compensated from my company and deduct the payments....i think i will follow up with some tax/accountants. peace.

also, i would never double dip 🙂

 

[tkim]

HAHAAHAH ...a user by the name of CPA to answer my question... how appropriate.

since u are here, can i deny my mileage compensation and instead deduct my lease payments?

 

[vi edit]

Well, you can only really deduct the payments if you are an independent contractor. And then, you can only deduct the payments equal to the business percentage.

For example - say you put on 2000 miles a month on your car. 1000 of that is business, a 1000 of that is personal. You can only deduct 50% of the costs (payment, gas, insurance, tags, maintanence, ect).

If your car payment is $400 a month, you can only deduct 50% of that + other expenses. The alternative is to just do a milage reimbursement. Right now it's at $.365 per mile. So if you drive 1000 miles a month, you would be reimbursed $365.

 

[tkim]

vi... though i am not independent contractor, i work as a consultant. i am never in my home office and i am always on the road.

so if i can just manage my reimbursement correctly, i think it might even pay for the car. this will work...now if i can only manage my money better.

thanks again.😕

 

[EagleKeeper]

Originally posted by: tkim
vi... though i am not independent contractor, i work as a consultant. i am never in my home office and i am always on the road.

so if i can just manage my reimbursement correctly, i think it might even pay for the car. this will work...now if i can only manage my money better.

thanks again.😕

I have worked as an independent consultant. Being paid a 1099 makes it easy. Being paid a W2 means that you need to have something indicating (written job description) that you are not a "employee" but are being shopped. Filing a Schedule C to cover expenses without having declared income will raise a red flag.

I could depreciate the cost of the vehicle(s) against the Schedule C.

Reimbursement from the customer need to be declared as income.

One can also choose mileage or expenses. Once a method was chosen, it has to be kept through out the life use of the vehicle.
The IRS requires a percentage of business use for the vehicle be reported, this percentage is used to also control the expenses.