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To: ken5050

Independent.....I am not reimbursed for mileage or any other expenses.


7 posted on 10/12/2011 10:33:59 AM PDT by celticfreedom (the most precious jewels you'll ever have around your neck are the arms of your children.)
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To: celticfreedom

I suspect that you probably claimed a very high % of total mileage for business use..they assume that most people have about 10-12k miles for personal use..IOW..if you drove 36k miles that year, 18,000 for business is normal..however, if you drove only 24,000 miles total, then 18k for business isn’t the norm, and the assumption is that you’re tinkering with the numbers..also..your comments are a tad confusing..either you claim the IRS allowed mileage rate, OR your actual expenses...you can’t do both...so all you need is your diary..showing the mileage..don’t even bother with gas receipts and repair costs...


15 posted on 10/12/2011 10:48:33 AM PDT by ken5050 (Cain/Gingrich 2012!!! because sharing a couch with Pelosi is NOT the same as sharing a bed with her)
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To: celticfreedom

Then you should get to deduct (IIRC) $0.51 per mile. That’s probably higher than the actual gas and repair costs you paid, and it’s a LOT easier to work with.

I wouldn’t recommend the actual receipts for gas/repair since they CAN argue that not all the gas was used for work, that some of the repairs were because of personal use, etc.

But the code is quite explicit - you can claim X amount per miles traveled. So stick with that.

I am not a tax attorney or accountant, and I didn’t sleep at a Holiday Inn last night, but I’ve been an independent contractor quite a bit in the past and have gone around with the IRS a few times. I was told to “take the easiest accounting method” by several reliable sources because it limits the options the IRS has for doubting your claims.

Take the mileage.


25 posted on 10/12/2011 11:09:53 AM PDT by FromTheSidelines ("everything that deceives, also enchants" - Plato)
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