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Post by southwestform on Apr 17, 2011 19:14:48 GMT -5
I purchased a car for personal use in December 2010 though I will use it for my side business sometimes and only used it minimally if at all for business in 2010. Previously I handled this by deducting mileage, though I am wondering if I should enter it at all as a vehicle used for my business and instead somehow expense my milage some other way? Reimbursement or something similar I read about.
Just looking for some advice.
Thanks.
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Post by commentator on Apr 17, 2011 19:45:54 GMT -5
Is your side business a sole proprietorship (Schedule C)? If so, there is no reimbursement option. You either deduct the business fraction of actual costs or use the standard mileage rate.
The mileage rate requires less bookkeeping.
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Post by southwestform on Apr 17, 2011 20:16:10 GMT -5
Is your side business a sole proprietorship (Schedule C)? If so, there is no reimbursement option. You either deduct the business fraction of actual costs or use the standard mileage rate. The mileage rate requires less bookkeeping. It is a sole proprietorship. I have been entering total miles driven and then the number of miles driven for business. What way are you suggesting I do it? I'm trying to figure out if I should even indicate that I purchased a car in 2010 for business use. Is this even necessary? Thanks for your patience. |
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Post by commentator on Apr 18, 2011 0:29:10 GMT -5
I would use the standard mileage rate unless the car was a very high business use percentage.. That way record keeping is minimized. All you need at the end of the year is business miles driven.
Remember that business related tolls and parking are separately deductable whether you use actual auto operating costs or the standard mileage rate.
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