As a sole member LLC I pay mileage as well as provide a company debit card for fuel expenses to my employee. Is this allowed? Will I be able to deduct both on my taxes?

Forum|Forum|7 years ago
June 6, 2019
1 reply
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I have been paying my employee the standard mileage deduction because he drives his own car when he travels. I have also been providing him a company debit card for which he pays for all expenses while he is away, including food, fuel, and lodging. I thought this was okay, but have seen some statements that seem to imply I can only deduct either the mileage or the fuel on my taxes.

TurboTax Self Employed Online

Critter

Level 15

That is usual business practices to add more income to your employee's paycheck to compensate for expenses and to issue them a card to pay for expenses you deduct on your Sch C.

YOUR vehicle expenses on the other hand will be limited to either standard mileage rate OR the actual expenses ... do not confuse the two as they are not the same on the Sch C.

Critter

Level 15

vehicle expenses for the employee will NOT be entered in the Vehicles expenses section of the program ... only yours does... read the screens carefully.