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kramergeorge
Level 2

Purchasing a new vehicle in another state for partial business use but may have to drive back. Will mileage count against me as personal use?

Or would it be possible to claim any of these miles for tax purposes?
1 Best answer

Accepted Solutions
GiseleD
Expert Alumni

Purchasing a new vehicle in another state for partial business use but may have to drive back. Will mileage count against me as personal use?

Based on the way you are describing this trip and the fact that it is a shared-use vehicle, it sounds like there is a large personal aspect to the trip.

 

According to IRS Publication 463 (Travel, Gift, and Car Expenses--note that the IRS has not yet updated this for the 2019 tax year yet; this is the 2018 version), you can deduct all of your travel expenses if your trip was entirely business-related.The challenge for you is in determining what part was business and what part was personal. Ask yourself: "If I was not using this vehicle for business, would I still be driving this distance to bring it home?" If the answer is yes, deducting the mileage and other travel expenses is not recommended based on the personal-use element. 

 

 

 

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3 Replies
GiseleD
Expert Alumni

Purchasing a new vehicle in another state for partial business use but may have to drive back. Will mileage count against me as personal use?

Based on the way you are describing this trip and the fact that it is a shared-use vehicle, it sounds like there is a large personal aspect to the trip.

 

According to IRS Publication 463 (Travel, Gift, and Car Expenses--note that the IRS has not yet updated this for the 2019 tax year yet; this is the 2018 version), you can deduct all of your travel expenses if your trip was entirely business-related.The challenge for you is in determining what part was business and what part was personal. Ask yourself: "If I was not using this vehicle for business, would I still be driving this distance to bring it home?" If the answer is yes, deducting the mileage and other travel expenses is not recommended based on the personal-use element. 

 

 

 

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kramergeorge
Level 2

Purchasing a new vehicle in another state for partial business use but may have to drive back. Will mileage count against me as personal use?

Thanks for that answer. My trip is not entirely business related. However, I only decided to purchase in Ohio, because it was a much better deal (even with the added travel expenses). Trying to decide whether to have an auto transport service ship, or save some money, but lose my time and drive back to Colorado. Since it is NOT entirely business-related, I understand I won't be able to claim these miles or the auto transport fee (if I go this route). Thanks for the clear answer.

VictoriaD75
Employee Tax Expert

Purchasing a new vehicle in another state for partial business use but may have to drive back. Will mileage count against me as personal use?

You can only deduct miles driven for business purposes. The vehicle would be considered listed property if it is used for both business and personal purposes. Any travel associated for personal purposes would be tracked separately from business miles. In order for miles to be deductible, they must be tracked and substantiated. A log of miles must be kept and should include the following information:

  • Date
  • Number of miles driven
  • Business purpose

As the purchase of the vehicle appears to be for both business and personal purposes, and picking up the vehicle does not have a specific purpose related to the activities of the business, the miles would not be deductible. Additionally, commuting miles are not deductible. 

 

Business Use of Vehicle

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