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| *The Commerce Journal>>>United States Taxes |
Tax deductions for using personal car for business? |
So I've asked similar questions before but my situation has changed since then. I am currently employed with the local paper one night a week collecting old papers and quarters from their racks. I drive my own car around for about 2 hours. The route itself is about 20 miles and obviously always the same. I was originally hired as an independent contractor, but now I am on the payroll so my income taxes will be handled normally. You will still need to keep detailed records of your mileage, split between business miles, personal miles, and commuting miles. You have a choice whether to claim the flat mileage rate, 50.5 cents per mile for 2008, or actual car expenses, but in either case can only deduct the portion that's for business miles. Whatever that comes to, you'll then subtract the total reimbursement, and only deduct the rest. The IRS approved rate is .505 per mile. You can claim this rate LESS what you receive from your employer for miles driven or .155 as an reimbursed business expense. Keep a daily log of all miles driven and all reimbursements received by your employer. |
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