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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 2033
Experience:  Certified Public Accountant
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Preparing tax return with a Schedule E (rental income from

Customer Question

Preparing tax return with a Schedule E (rental income from truck and tools.) Can I use the
standard mileage rate for miles on truck all of which were for rental or do I need to use actual expenses (insurance,fuel, repairs and maintenance, etc?
Submitted: 1 year ago.
Category: Finance
Expert:  Mark Taylor replied 1 year ago.

Hi, my name is Mark. I am a CPA. I would be happy to help you with your question. Let me better understand this, are you renting the truck to customers?

Customer: replied 1 year ago.
Renting to my employer, from whom I get a W-2 for salary and a 1099 for rental of truck.
Expert:  Mark Taylor replied 1 year ago.

I understand. Thank you for the information. In the first year you can select either method. In you choose the actual method you are not able to switch in future years. If you use the standard mileage rate you can switch to actual expenses in later years. Is this the first year that the truck was placed in service.

Customer: replied 1 year ago.
No, this is not first year truck placed in service. It was used in prior two years but as a part of self employed Schedule C for which no deductions claimed.
Schedule C employer just paid a set amount for use of truck each month.
Expert:  Mark Taylor replied 1 year ago.

Ok, the standard mileage rate is the easiest you would just need to keep a log of the business mileage.

Customer: replied 1 year ago.
Thank you. Always keep a log each day. At least doing one thing correctly it appears.
Appreciate your help.
Expert:  Mark Taylor replied 1 year ago.

Sounds like you are off to a good start.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.

Customer: replied 1 year ago.
I got your reply (or someone's reply). Finished return and filed. Thank you!
Expert:  Mark Taylor replied 1 year ago.

You are very welcome. I am happy I could help.