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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10113
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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We have a construction company llc and use our personal

Customer Question

we have a construction company llc and use our personal trucks for the business. we currently use business funds to pay for gas, oil changes, tires, ect. Can we personally deduct the miles at the rate of 51 cents per mile. the business does not own the trucks
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: no
Submitted: 1 month ago.
Category: Tax
Expert:  Lane replied 1 month ago.

Hi, looks like no on else is picking this up. I can help you here. My name's Lane

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I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, a Master’s Degree, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986…

Please bear with me for a moment, while I prepare your response.

Expert:  Lane replied 1 month ago.

When deducting automobile expenses for business, there are two methodsw that IRS accepts, but only one can be used:

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Mileage or actual cost

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So, yes, because you are self-employed (sole proprietors, LLC not taxed as a corporation, or partners) you can deduct, but again can only use one method.

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Actual costs are oil, gas, depreciation, repair and maintenance, tires, etc. ... the true actul costs ... along with depreciation on the equipment (getting back what you have IN the vehicles over time)

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Mileage is an average, a replacement, a proxy, for actual costs (supposedly has everything built into it).

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And for EITHER method, that deduction has to be factored by business use ... If either your mileage (at the current IRS rate) totals to, sat, 10,000 OR if your actual costs total to 10,000 ... and you use the vehicle 70% of the time for business, that 10,000 must be factored by 70%, so it's a $7,000 write off

Expert:  Lane replied 1 month ago.

If this is a multiple member LLC, then it's taxed as a partnership, and the litmus test for whether you can deduct the business mileage on your return is whether or not you own the vehicle. (Per IRS Tax Topic 510, http://www.irs.gov/taxtopics/tc510.html).

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So becasue the partnership (LLC taxed as a partnership) doesn't own the vehicles you MUST take the deduction personally on the 1040

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Please let me know if you have any questions at all, before rating me.

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And if you DON'T have other questions Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …would be appreciated!

Otherwise I receive no compensation for the work.

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Thank you,

Lane

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I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, a Master’s Degree, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986

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