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Is there a limit to how many miles you can deduct for taxes?

Originally posted by: FoBoT
Originally posted by: deftron
j/k ... I'm an independent courier for a couple major bank chains
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then i don't see why there would be a limit
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sweet ... with this new route I have, I don't think I'll have to pay any taxes after mileage deduction
 
The mileage is put onto the business expense form. that goes onto the Schedule A.

Make sure that you document as much as possible, either the leave/arrival mileage or at least log the trips. Paper and/or spreadsheet.

When large mileage deductions show up, the IRS can get very curious for people on a W2.
 
Are you paid by the banks for that mileage? I think the deduction is only for mileage that isn't reimbursed for. Is there a gas allowance or anything like that which might screw you out of the deduction?

Also, I'm not sure it would apply to you, but isn't there an alternative minimum tax just for people in your situation? I'm trying to find out more info on the Alt. min. tax myself as I'll have a TON of deductions next year. (teacher's deduction, closing costs on 2 homes, tuition deduction, for starters)
 
I do some local travel for my job and use my own transportation. I usually just expense out $.365/mile.
 
Originally posted by: DrPizza
Are you paid by the banks for that mileage? I think the deduction is only for mileage that isn't reimbursed for. Is there a gas allowance or anything like that which might screw you out of the deduction?

Also, I'm not sure it would apply to you, but isn't there an alternative minimum tax just for people in your situation? I'm trying to find out more info on the Alt. min. tax myself as I'll have a TON of deductions next year. (teacher's deduction, closing costs on 2 homes, tuition deduction, for starters)
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Neither of these apply because, assuming he receives a 1099, he would report the reimbursement as income and the mileage as an expense. All of this is handled on schedule C, not A. This should not impact any calculation for AMT either, because a loss is shown as business loss in arriving to Adjusted Gross Income. In other words, the loss is not a deduction, but rather a reduction of income.

As far as I know there is no limit to the number of miles you can use, but you better have it written in an approved mileage recordkeeping book, just in case you get audited.
 
Originally posted by: RKS
I do some local travel for my job and use my own transportation. I usually just expense out $.365/mile.
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But your's is a schedule A deduction of non-reimbursed work-related expense. His is self-employment related. He will use the same rate, but the reporting is different.

edit: standard rate is $.375/mile plus parking and tolls for 2004.

Make sure you wouldn't come out better if you used actual cost (depreciation, maintenance, gas, oil, repairs, etc)
 
Originally posted by: CPA
Originally posted by: DrPizza
Are you paid by the banks for that mileage? I think the deduction is only for mileage that isn't reimbursed for. Is there a gas allowance or anything like that which might screw you out of the deduction?

Also, I'm not sure it would apply to you, but isn't there an alternative minimum tax just for people in your situation? I'm trying to find out more info on the Alt. min. tax myself as I'll have a TON of deductions next year. (teacher's deduction, closing costs on 2 homes, tuition deduction, for starters)
Click to expand...

Neither of these apply because, assuming he receives a 1099, he would report the reimbursement as income and the mileage as an expense. All of this is handled on schedule C, not A. This should not impact any calculation for AMT either, because a loss is shown as business loss in arriving to Adjusted Gross Income. In other words, the loss is not a deduction, but rather a reduction of income.

As far as I know there is no limit to the number of miles you can use, but you better have it written in an approved mileage recordkeeping book, just in case you get audited.
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You're the man! Thanks!
 
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