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| I agree with fly-sig. The paperwork required to itemize expensing vehicle maintenance is way more involved than simply claiming the mileage rate. If i recall, you have to log work usage vs personal usage, and then pro-rate all of your vehicle expenses by that percentage. The IRS rate is supposed to encompass all of that. Another aspect is that the vehicle is an asset and has depreciating value. While I travel for work, I don't do gig work. My accountant told me to just use the IRS rate.
Peter
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| Posts: 100 | Location: Chesapeake, VA | Registered: September 05, 2012 |  
IP
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| Uber/Lyft give you an annual report on mileage. IRS rate was simple & easy.
The Enemy's gate is down. |
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Optimistic Cynic
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| When I was using my vehicle for work purposes in my self-employed business, I would run my taxes both ways (with actual expenses vs. the IRS per mile "allowance"). For some strange reason the actual expenses always ended up higher than the allowance. Even just the gas alone was usually higher than the IRS. Both calculations were done with the same mileage figures. There are multiple phone apps out there that will help track mileage and expenses as they occur. I used aCar, but there is probably something better now.
If you are going the actual expenses route, don't forget things like insurance, depreciation, and interest on your car payments. Stuff like personal property taxes can usually be deducted directly, rather than pro-rated as vehicle expenses.
It can get complicated deciding where to take deductions. At some point it becomes a choice between how much time you expend (and possibly waste) chasing that last dollar vs. what your time is worth to you. |
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| Just be aware of an odd quirk. You can switch between the two methods EXCEPT in year one. Once you pick actual in the first year that's it.
“So in war, the way is to avoid what is strong, and strike at what is weak.”
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