Anyone use own vehicle for work? (1 Viewer)

[SHIZNITTTT]

Started a new job that pays 50 cents per mile.  Usually drive around 600 miles every 2 weeks.   Gas is cheap here at 2 bucks a gallon give or take a dime either way.    Right now I drive a brand new vehicle so it is pretty sweet getting paid to sit on my butt and drive around.   But, in the end is it really worth it?   The wear and tear?   The mileage put on vehicle is going to pile up.   

Is it worth it?

What all deductions can I take at the end of the year?     Loan interest?  The other money allowed by the IRS which is I think 56 cents per mile atm.     

Thanks in advance.   

Oh, I drive a big ### truck that gets around 18 miles per gallon on the highway, and around 14 in the city.   

 

[Nugget]

Can you go get a cheap Corolla/Sentra/throwaway car?

 

[SHIZNITTTT]

Can you go get a cheap Corolla/Sentra/throwaway car?

Thought about that for a minute.   I spend so much time in my vehicle that I want something nice.  Creature comforts.   Also, anything smaller than a SUV would get swallowed up by the damn potholes here.  

 

[GroveDiesel]

Pretty sure that if you're getting paid milage by your employer, that you won't be able to claim anything else on it tax-wise.

Whatever you receive from your employer, it would be smart to segregate that money and use it for repairs, tires and eventually paying for a new vehicle.

 

[hooter311]

If you are reimbursed you can't write off the expenses.  If you aren't reimbursed you can either write off the IRS standard which I too think is the .56 cents per mile, or you can keep all your receipts and logs and write off exact costs and depreciation.  

I'm in life/health insurance sales and write off about 50k miles a year on my Lincoln MKX (Fancy Ford Edge).  I wish I got closer to 30mph than 20mph but my back gets tweaked and the comfort level is worth it.

 

[-fish-]

Buy a commuter car that gets good mileage if you don't need the truck for work.   If you're only getting .50/mile you'll kill your truck, eat your mileage allowance in gas and maintenance and not get any tax benefits.

 

[Rattle and Hum]

Without showing my math I'd guess is that your break-even is about $.40/mile. So, you are making about $30 a week unless you can make a bottom-line deduction of the entire $.50/mile. Then you would be clearing $180/week which would be worth it if you like doing it and don't need to make more than about $18/hour (assuming 10 hrs/week). I would bring a paycheck and Indy contractor agreement to a CPA to determine if you can deduct the full .50/mile from your pay...best $100 you'll spend all year.

 

[Dan Lambskin]

I believe all you would be able to claim is the difference between the federal rate and your employer rate, so $0.06/mile

 

[eoMMan]

What percentage of the 600 miles every 2 weeks is for work/business?

Let's assume it's close to 100%.

That's $600 every 4 weeks or $7,800 for the year.

And 15,600 miles a year (300 x 52) really isn't that many miles.

I'd say take the money and be happy. That's a great perk. If you can suck it up and drive in a smaller vehicle, you'll save a ton of money.

And keep in mind that in the eyes of the IRS and most employers, the commuting miles to and from work don't count as business miles.

 

[eoMMan]

I believe all you would be able to claim is the difference between the federal rate and your employer rate, so $0.06/mile

Looks like $0.535/mile in 2017.

 

[Dan Lambskin]

Looks like $0.535/mile in 2017.

Ah OP had $0.56

 

[Mr. Ected]

Do you have an app like this for tracking mileage?

 

[SHIZNITTTT]

Do you have an app like this for tracking mileage?

Thanks I will try it out. 

 

[SHIZNITTTT]

I see several replies to get a better mileage car, but I just like the room in my truck.   I thought there would be more deductions come tax time?  Tires, oil changes?  I dunno.  But, thanks. 

 

[Nugget]

I see several replies to get a better mileage car, but I just like the room in my truck.   I thought there would be more deductions come tax time?  Tires, oil changes?  I dunno.  But, thanks. 

I don't think you get to deduct those because you are being paid for them. I have a home office so I put my internet bill on my corporate card every month. I don't think I could deduct that from my taxes as well. 

 

[jvdesigns2002]

I drive a bit for my managerial job--like 300 miles per month.   I get paid a very similar mileage rate for wear and tear on my vehicle that you do.   I don't believe you get to write off much of those types of things because as a similar poster mentioned--you are technically getting paid for them as an employee. 

However--I also own my own business, and on top of that--I'm a landlord--so I do get the benefits for several vehicle write offs for that.    You might want to consider starting and registering some sort of small side business where you can expense some fo the miles/wear and tear on your car to that (as if you own a business--your vehicle could be considered a company car).   For me--I manage a retail store--but also design my own line of stuff--so many times when I drive to get supplies for the store that I manage--I'll also pick up a few things that I need for my personal line using my own credit card--and thus--part of the mileage that I put on my vehicle for that trip also relates to my business (which I can use as a write off).