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USTaxAdvising
USTaxAdvising, Accountant
Category: Finance
Satisfied Customers: 1236
Experience:  Professional with finance related questions.
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For a company owned car using the actual expenses method, do

This answer was rated:

For a company owned car using the actual expenses method, do trips to a mechanic qualify as business miles?

USTaxAdvising :

If the car is used 100% for business then yes these would qualify. In order to do your business you need to ensure your transportation is operating effectively.

USTaxAdvising :

But I am confused. If you are using the actual expenses method why do you care about the miles? Perhaps the vehicle is also personal use? if that is the case the trips to the mechanic would be partly business and partly personal based on the ratio of business to personal miles.

USTaxAdvising :

Basically trips to the auto shop would be deductible to the extent the vehicle is used for business purposes.

USTaxAdvising :

I hope this provides the clarity you were looking for. Please let me know if you have any further questions.

USTaxAdvising :

Best regards,

Customer:

Yes, this is a case of mixed personal and business use. How would I account for the ratio when keeping a mileage log given the fact that the ratio is not determined until year end.

Customer:

To be clear, I understand when using the actual expenses method the cost of maintenance is deductible for the business use portion. My question is about how miles are accounted for when keeping a contemporaneous log.

USTaxAdvising :

You would need to account for the mechanic miles seperately from business/personal. Then at the end of the year you would take the ratio.

USTaxAdvising :

If you needed a number now for estimate purposes then you would basically take the ratio you have now instead of waiting till year end. Does this make sense?

Customer:

Excellent. Thank you!

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