THIS IS THE LANGUAGE THAT THE (IRS)IS USEING TO SAY THAT I CAN'T TAKE THE STANDARD MILEAGE DEDUCTION BUT I HAVE TO TAKE THE ACTUAL EXPENCE AT TAX TIME.THEY SAY THAT I AM (FOR-HIRE MOTER CARRIER) WHICH MEANS A PERSON ENGAGED IN THE TRANSPORTATION OF GOODS OR PASSENGERS FOR COMPENSATION. I HAVE A 1-TON CARGO VAN UNDER 10000GVW. WHAT I NEED IS DOCUMATATION THATS SAYS ( A COMMERCIAL VEHICLE UNDER 10000GVW THATS HAULS GOODS FOR COMPENSATION CAN USE THE STANDARD MILEAGE METHOD) OR ANYTHING CLOSED TO THAT. I KNOW ALOT OF CARGO VANS CLAIM MILES AT THE END OF THE YEAR SO I HOPE YOU ALL TRY TO RESEARCH THIS THE BEST THAT YOU CAN.THE (IRS) IS USEING THE (FEDERAL MOTER CARRIER SAFETY ADMINISTRATION) UNDER (DEFINITIONS 390.5). PS SOMEONE SAID THAT THERE IS A (CHIEF COUNCEL MEMORANDUM) THAT STATES WE CAN CLAIM MILES BUT I CANT FIND IT. I HOPE SOMEONE CAN FIND IT IN THE NEXT COUPLE OF WEEKS. TIME IS TICKING OF ME. SEE YA ALL LATER BULLRUSH.
STANDARD MILEAGE METHOD
- Thread starter BULLRUSH
- Start date
Hey , Tony, I spoke to Bullrush live, and explained to him the same that I have always said, there is a Chief council memo, but I can not find it either, in Jan 2001 we went over this on my forum, and it was asked by Dryrun, I havent heard from him as yet, he is the one that brought up the CCM, I had a copy of it but can not find it, that was 2 years ago. When I pull down my 2001 files I might, but not at the present time, there in the attic right now. an I have to find them, but probably not until after april 15th. besided the other problems that i am having since the surgery. I will try and get it as soon as I can.
Frank
Frank
Frank and I have disagreed about this subject for several years. First of all Frank I am glad to hear that you are doing OK. I know you had some medical problems and it!s good to hear from you again on EO
I have run D units with 33,000 lbs gross for 15 years and have always taken the mileage deduction vs depreciation and expenses. I was audited by the IRS in 1996 and was given a OK to continue this method.My Tax guy is an ex IRS examiner and he has always advised me along with a tax oufit that advertises in Land Line to go this way.The only drawback is that you can!t change accounting methods,once you start with mileage deductions you must always stay that way. But if you are running 100,000 miles a yaer and think you always will be that is the way to go. Hopefully I won!t wind up in Federal Prison but I understand thats not a bad life either.Free Medical care,meals,exercise areas,as look as your cellmate isn!t named BUBBA you will probaly be ok.LOL.
I have run D units with 33,000 lbs gross for 15 years and have always taken the mileage deduction vs depreciation and expenses. I was audited by the IRS in 1996 and was given a OK to continue this method.My Tax guy is an ex IRS examiner and he has always advised me along with a tax oufit that advertises in Land Line to go this way.The only drawback is that you can!t change accounting methods,once you start with mileage deductions you must always stay that way. But if you are running 100,000 miles a yaer and think you always will be that is the way to go. Hopefully I won!t wind up in Federal Prison but I understand thats not a bad life either.Free Medical care,meals,exercise areas,as look as your cellmate isn!t named BUBBA you will probaly be ok.LOL.
Here is what I have found to be true regarding this matter, sort of the layman's terms- If the truck or trucks are used FOR a business, (for instance you own a furniture store and use the trucks to deliver) you take mileage deduction. If the truck or trucks ARE the business (Beavis Trucking Co.) you depreciate them. Best bet is to depriciate over 5 years. That offers the best write-off, and the vehicle usually isn't much fun to own after that period of time anyway, so you trade it and start over again.
-Weave-
-Weave-
I DRIVE 100K PLUS A YEAR MY CPA FIGURED EACH WAY AND IF I WOULD GO THE ACTUAL EXPENCE ROUTE I WOULD BE PAYING ABOUT 5K MORE PER YEAR JUST ASK FRANK HE SEEM MY RETURN THE IRS ADJUSTED FOR THE YEAR 2000.IT'S NOT LIKE I OWN MY OWN STORE AND HAULING GOODS WITH MY VEHICAL THAT MIGHT BE OK. THE IRS IS SAYING THAT I HAUL FREIGHT FOR COMPENSATION MEANING I PICK UP AT A COMPANY AND DELIVER AT A COMPANY AND GET COMPENSATED FOR THAT.
I believe it is all in the way you word things on your forms. Are you Self Employed? Are you an Expediter? You may deliver freight, but you also deliver packages, and medical, and mail. You are a basic delivery person. You’re not driving a big truck that is used exclusively as a freight carrier, so you should be okay. If you have to register the name of your business with the IRS and get an EIN as a delivery driver or a messenger, or courier. Then those A holes from the IRS can’t do anything to you for filing the standard miles.
BullRush:
This will cut through all the BS: Here is the Publications that you need.
If you use your car for business purposes, you may be able to deduct car expenses. You generally can use one of two methods to figure your deductible expenses: actual expenses or the standard mileage rate
In this publication, "car" includes a van, pickup, or panel truck. For the definition of "car" for depreciation purposes, see Car defined under Actual Car Expenses, later.
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IRS Publication 463, Travel, Entertainment, Gift, & Car Expence. On page 16, upper left corner, example #1
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IRS Forms & Publications Car Expenses.
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I hope this will help you win your case.
This will cut through all the BS: Here is the Publications that you need.
If you use your car for business purposes, you may be able to deduct car expenses. You generally can use one of two methods to figure your deductible expenses: actual expenses or the standard mileage rate
In this publication, "car" includes a van, pickup, or panel truck. For the definition of "car" for depreciation purposes, see Car defined under Actual Car Expenses, later.
____________________________________________________________________
IRS Publication 463, Travel, Entertainment, Gift, & Car Expence. On page 16, upper left corner, example #1
-----------------------------------------------------------
IRS Forms & Publications Car Expenses.
________________________________________________________________
I hope this will help you win your case.
I went back to the files and found the page that my ex-accountant sent me re the Standard Mileage Rate.
The CCM is mentioned but not by reference number, sorry. Anyway, the gist of the article was that the Standard Mileage deduction is still a grey area.
This is from Tax Week, a CCH publication, year 2000.
Quoting:
"In applying the above factors to the facts before it, the CCM determined that, in this situation, the vehicles used in the courier business were not for hire and thus the standard mileage rate could be used to compute the allowable business deduction. The IRS's decision was based in large part upon the facts that the taxpayer's customers were mainly concerned about the delivery of items and not upon their physical use of the vehicles."
"However, the CCM did state that it could be found that a courier service vehicle was used for hire if extenuating circumstances were present (e.g., a unique vehicle was required by the customer, or payment was based upon the miles driven."
I'll fax this article to you if you wish. I have a feeling that even if the IRS bothered to look at it, it could also be used against your case, based on the second quoted paragraph above.
I looked online to see if this article was archived anywhere but no luck. Perhaps an accountant can reference the CCM by subject search.
IMHO, it's safer to use the actual expense method, using "acceptable" numbers (hint), rather than raise the "mileage" red flag, even if it's technically legal.
Tom
The CCM is mentioned but not by reference number, sorry. Anyway, the gist of the article was that the Standard Mileage deduction is still a grey area.
This is from Tax Week, a CCH publication, year 2000.
Quoting:
"In applying the above factors to the facts before it, the CCM determined that, in this situation, the vehicles used in the courier business were not for hire and thus the standard mileage rate could be used to compute the allowable business deduction. The IRS's decision was based in large part upon the facts that the taxpayer's customers were mainly concerned about the delivery of items and not upon their physical use of the vehicles."
"However, the CCM did state that it could be found that a courier service vehicle was used for hire if extenuating circumstances were present (e.g., a unique vehicle was required by the customer, or payment was based upon the miles driven."
I'll fax this article to you if you wish. I have a feeling that even if the IRS bothered to look at it, it could also be used against your case, based on the second quoted paragraph above.
I looked online to see if this article was archived anywhere but no luck. Perhaps an accountant can reference the CCM by subject search.
IMHO, it's safer to use the actual expense method, using "acceptable" numbers (hint), rather than raise the "mileage" red flag, even if it's technically legal.
Tom