mileage discrepancy issues

anthony,

one other thing that might be worth you checking into is tax deductions for your out of pocket expenses related to the job. Do you use this car soley for the work or do you use it for personal conveyance as well?

IIRC you stated you are doing this as a contractor right? If so, that means you will get a 1099 instead of a W2. If you are a 1099 contractor, make sure you are getting your taxes paid accordingly. Otherwise you might be in for a world of hurt at the end of the year.

You might also want to register as an LLC or sole proprietor business owner to protect your other assets if you get into an accident that you are found to be at fault. (People are sue happy in this country these days).

 

I use a full synthetic and change it about every 15k miles. It comes out looking pretty clean, so I could probably stretch it a bit if I wanted to.

Just keep an eye on the color when you check your oil levels, when it starts to get dark, I'd change it.

 

Just thought I would let you know about the mileage rules.

http://www.irs.gov/publications/p463/ch04.html#en_US_publink100033935

This just does not mean taxi's



Standard mileage rate not allowed. You cannot use the standard mileage rate if you:

• Use the car for hire (such as a taxi)

I assume as a courier you are tranporting property for hire. Then the definition of car is defined as follows:


Car defined. For depreciation purposes, a car is any four-wheeled vehicle (including a truck or van) that is made primarily for use on public streets, roads, and highways. Its unloaded gross vehicle weight must not be more than 6,000 pounds. A car includes any part, component, or other item that is physically attached to it or is usually included in the purchase price.



A car does not include:

• An ambulance, hearse, or combination ambulance-hearse used directly in a business,
• A vehicle used directly in the business of transporting persons or property for pay or hire, or
• A truck or van that is a qualified nonpersonal use vehicle.

 

The company is probably surprised as all hell that anyone said something about getting ripped off on mileage.
Most drivers justify the poor pay/treatment/freebies in this industry by saying:

"That's trucking"
"It's what you make of it"
"Part of the job"
"Freedom of the road"
"Sunsets and rainbows"

Independent contractor = you trash your own vehicle and pay for your own health insurance, retirement, taxes, etc.
While the company laughs all the way to the bank.
This is why Landstar, FedEx Ground, Prime, etc are some of the most profitable trucking companies around.
They just shift all those expenses on the contractors, who are more than happy to get screwed.
Unless you own at least 5+ routes/rigs, most O/O in this biz don't make much more than company drivers.

My advice: screw the oil changes, go get a real job.

 

Simply put.

Since you use the vehicle for tranporting property for hire, then you cannot take the standard mileage.


You can take the actual expenses of the vehicle including depreciation, fuel, insurance, license and etc.