1. Attention: We have put together a thread with tips and a tutorial video to help with using the new software. Please take a moment to check out the thread here: Trapshooters.com Tutorial & Help Video.
    Dismiss Notice

actual tax advice needed!

Discussion in 'Off Topic Threads' started by quicky, Feb 11, 2009.

Thread Status:
Not open for further replies.
  1. quicky

    quicky Member

    Joined:
    Jan 29, 1998
    Messages:
    255
    I do have a real tax question: I have a small business and use magnetic placards on the doors of my truck for advertising. I will take a deduction for all the miles I used my truck for while conducting actual business. Can I deduct other miles driven with the placards on my truck while not actually conducting 'business'? It is a lawn care business if that helps. Thanks in advance, Quicky
     
  2. Easystreet

    Easystreet Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    1,463
    Quicky,

    I don't think that IRS would buy that argument. You can deduct the percentage of business usage of the truck, but driving to the shooting range or to the movies with a sign on your truck does not constitute "business usage" in my opinion. Of course, if you claim it and don't get audited, then you've gotten away with it.

    Easystreet
     
  3. waterhouselake

    waterhouselake TS Member

    Joined:
    Apr 2, 2006
    Messages:
    291
    Usually they want you to maintain a log book to separate the business mileage from the personal mileage. The new Geithner-Daschle Turbo Tax program says claim it all as business mileage until you get audited, then claim ignorance or that the dog ate the log book.
     
  4. DJM

    DJM Member

    Joined:
    Jan 29, 1998
    Messages:
    519
    Location:
    Central Minnesota
    I see many many "business" trucks towing boats, travel trailers and trailers full of ATV's or snowmobiles. Hard to believe it's for business purposes especially when I see the kids are on board. Makes me wonder how many are seperating those miles from business use.
     
  5. Dickgshot

    Dickgshot Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    3,676
    You said you wanted an actual answer, and the answer is that you can't.
     
  6. J.Woolsey

    J.Woolsey Member

    Joined:
    Aug 12, 2007
    Messages:
    930
    Dickgtax is exactly right. No can do!
     
  7. halfmile

    halfmile Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    15,642
    Location:
    Green Bay Wisconsin
    To split hairs, it would be logical to call the non business miles advertising. That is as long as you had the signs on.

    An auditor may think otherwise.

    FYI I was told they would not conduct an audit unless they were quite certain to get at least $700, since that was the assumed averge cost of an audit.

    I would deduct a logical amount of miles and forget it.

    HM
     
  8. nipper

    nipper TS Member

    Joined:
    Dec 30, 2007
    Messages:
    1,502
    no sorry you cant deduct the mileage to and from trap shoots in your "company" truck

    bill
     
  9. J.Woolsey

    J.Woolsey Member

    Joined:
    Aug 12, 2007
    Messages:
    930
    You can if your name is Todd Nelson.
     
  10. quicky

    quicky Member

    Joined:
    Jan 29, 1998
    Messages:
    255
    I have kept meticulous records of actual business mileage. Just wondered about the other if I had the signs on. I do like the Geithner plan for tax exemptions, however.
     
  11. yenko

    yenko TS Member

    Joined:
    Jan 29, 1998
    Messages:
    221
    .40 cents a mile this year.
     
  12. J.Woolsey

    J.Woolsey Member

    Joined:
    Aug 12, 2007
    Messages:
    930
    Actually the standard mileage rate for business use is 48.5 cents per business mile. Or you can choose to deduct actual expenses, which include Depreciation, lease payments, tires, insurance, registration fees, garage rent, parking fees, tolls, liscenses, repairs, and gas and oil. Travel for medical reasons can be deducted at 20 cents per mile. If you are itemizing using a schedule A. These figures are for the tax year 2007. J.Woolsey
     
  13. Lead Man

    Lead Man TS Member

    Joined:
    Apr 29, 2008
    Messages:
    524
    Just take a client with you to the club or meet one there and you can deduct the rounds and ammo as well as the miles for entertainment expense.

    Why have a business if not for the deductions.
     
  14. howie

    howie Member

    Joined:
    Jan 29, 1998
    Messages:
    47
    The 2009 business standard mileage rates are:

    - $0.55 per mile for business
    - $0.24 for medical and moving
    - $0.14 for charity

    See IRS announcement IR-2008-131, Nov. 24, 2008.

    P.S. If you want to take actual expenses you still must track business and non-business uses, and only the business percentage of the actual expense is deductible on vehicle expenses on the Schedule C. For example, if you drove the truck 10,000 miles and 8,500 were for business, then 85% of the cost of insurance woud be part of your actual expenses on Schedule C. So if you paid $1000 in insurance for the year you could deduct $850 as part of your vehicle expenses.
     
  15. IM390

    IM390 Member

    Joined:
    Jan 29, 1998
    Messages:
    213
    NO, It's like hiring someone to walk down a street advertising your company with a billboard. You hire the person, pay for the sign. Period. It's called advertising. You can't deduct the number of miles they walk.

    Although you might think of giving all you employees a company shirt or jacket with your name and phone number printed on it. That way you kinda can double dip. The advertising is in the shirt which is deductible and wherever your employees go, they are spreading the word for your business and they will also think your a swell guy by giving them a shirt or jacket which has been shown to inprove productivity.
     
Thread Status:
Not open for further replies.