Welcome Guest. Sign in or Signup

7 Answers

Can you deduct gas and mileage?

Asked by: epondel 851 views YA Discussion

I just talked to a guy in the super market who swears that I can deduct both mileage and gas as well as other expenses related to my business. He says he worked for the government for several years and a good friend of his is an accountant. When I did last years taxes I deducted miles but not gas, cost to repair the car, etc.

This year I’m stuck with a $ 330/month car payment on a newer car, plus car insurance of course. The more I can deduct, the better. But I’m not so sure I believe him. I’ve not read anything that says that I can deduct both. It is true, I use the car mostly for business but I am also a college student so there are personal miles as well.

How others found here:

  • can you deduct gas and mileage on taxes
  • can you deduct gas taxes
  • can you deduct mileage and gas

7 Answers



  1. Bash Limpbutt's Oozing Cyst© on May 17, 2012 Reply

    You just talked to a tax idiot at the super market.

    For business use you can either use the standard mileage rate OR the actual apportioned cost. PERIOD. If you use the mileage rate the ONLY additional deductible costs are parking and tolls for business use.

    0 Votes Thumb up 0 Votes Thumb down 0 Votes



  2. card-ron on May 18, 2012 Reply

    Never take tax advice from a guy in the supermarket. You can deduct either the standard mileage rate or actual expenses (gas, oil, maintenance, depreciation, etc.) but you cannot deduct both.

    0 Votes Thumb up 0 Votes Thumb down 0 Votes



  3. the kid on May 18, 2012 Reply

    You can deduct mileage with a log. The guy you talked to is an idiot.

    0 Votes Thumb up 0 Votes Thumb down 0 Votes



  4. Jacqueline on May 18, 2012 Reply

    Go to irs.gov and seek the publication for Business use of your car and you will find the information on how to deduct either the actual cost or the mileage for your business. Also keep good records or a log of the mileage you are driving since you will need to prorate your business miles into the total miles you have driven so you have a percentage and then you can prorate your expenses to arrive at the business expense. In any case you cannot deduct actual cost and mileage. Work both calculations and take the highest one.

    0 Votes Thumb up 0 Votes Thumb down 0 Votes



  5. Bobbie on May 18, 2012 Reply

    NO, No, and never ever just believe what some one else tells you about taxes with out going to the http://www.irs.gov website and use the search box to read and try to understand what the correct rules are for this purpose.
    Publication 463 (2011), Travel, Entertainment, Gift, and Car Expenses
    Chapter 4 Car Expenses
    If you use your car for business purposes, you ordinarily can deduct car expenses. You generally can use one of the two following methods to figure your deductible expenses.
    Standard Mileage Rate
    Actual Car Expenses
    If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year.
    You cannot deduct depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees. See Choosing the standard mileage rate and Standard mileage rate not allowed, later.
    Parking fees and tolls. In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. (Parking fees you pay to park your car at your place of work are nondeductible commuting expenses.)
    Use for more than one purpose. If you use your car for more than one purpose during the tax year, you must allocate the use to the various purposes. You do this on the basis of mileage. Figure the percentage of qualified business use by dividing the number of miles you drive your car for business purposes during the year by the total number of miles you drive the car during the year for any purpose.
    Chapter 5 5. Recordkeeping

    How To Prove Expenses
    What Are Adequate Records?
    What If I Have Incomplete Records?
    Separating and Combining Expenses
    How Long To Keep Records and Receipts
    Examples of Records

    http://www.irs.gov/publications/p463/index.html

    Hope that you find the above enclosed information useful. 05/17/2012

    0 Votes Thumb up 0 Votes Thumb down 0 Votes



  6. tro on May 18, 2012 Reply

    to claim mileage(or the actual cost method) you need to determine the actual mileage used for business
    this is generally a contemporaneous log of the miles you drive, noting those that are for business
    if you use the mileage method that is 55cents a mile which includes all expenses of the vehicle except tolls and parking fees
    if you use the actual cost you have to determine the actual % of the miles is for business and apply that to the costs
    driving to and from work is commuting and is NOT deductible–’mostly’ does not cut it

    0 Votes Thumb up 0 Votes Thumb down 0 Votes


Your Reply