tax deduction - fuel

[cybermom96]

Hi

I have a bit of a situation.   During the summer for 1 month - we picked up school buses and relocated them to a new state.   We had to pay for the fuel ourselves and received a 1099 misc - 

We did not own the school bus, nor did we pay a fee or rent it.   How or where do we deduct the fuel expense?  do we list fuel under general business expenses?  do I take mileage?  I have no specifics for the bus information - we back and forth many different buses over many different states and was paid a flat rate from the transportation company.   Appreciate any responses as I cannot get a hold of anyone at the IRS

[Carl]

First, my screen shows you are using TurboTax Business, which is completely different from Home & Business. Be aware that TurboTax Business can ***NOT*** be used to complete a personal 1040 tax return *of* *any* *type*. No exceptions.

Your income should be reported in box 3 of the 1099-MISC you received. As far as the IRS is concerned, it's self-employment income.  The only possible way you can deduct your fuel (and possibly other expenses) expenses is claim the income as business income on SCH C as a physical part of your personal 1040 tax return. Do do that with the online version of Turbotax, you ***MUST*** use the Self-Employed version. If you'll be using the CD version of TurboTax that you install on your computer, then you can use the Premier version or higher.

Make *ABSOLUTELY CERTAIN* you keep your business related gas and other receipts *FOREVER*, in case you are ever audited.

Now I know you will have questions. But I"m not providing the information that I *inow* you're going to ask at this time, so as to avoid what I like to call "information overload". Just post back to this thread with your questions, when you get to that point in the process of completing the SCH C as a part of your personal 1040 tax return.

[Critter]

If you actually drove these buses to relocate them then you must deduct the actual FUEL costs paid ... do NOT use the vehicle expenses section ... you cannot use the standard mileage rate.  

If you put the buses on trailers that you own/rent/lease then that would be a different answer.