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Business use of car

The company I contract with used to report mileage reimbursement as income.....which I just wrote off on my schedule c

 

Now they do not....How do I note I still use my car for business ....without reporting mileage

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3 Replies
KrisD15
Expert Alumni

Business use of car

Your only option is to enter your vehicle under Business Vehicle Expense (under Business Expenses) on your Schedule C.

 

You will have the option of uses the Standard Mileage Rate or Actual Expenses. 

You will need to keep a log and/or receipts for the mileage and/or expenses. 

 

 

 

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Business use of car

Perhaps I was not clear

 

Previsously they included my mileage reimburement as income and I just turned around and wrote it off using the mileage rate. Now they are no longer including my mileage reimbursement as income.....but I am being reimbursed for it

 

I believe this means I can no longer write off the mileage rate......since i was reimbursed

 

but I do not want to check that I stopped using the vehicle for business since I still use it (perhaps it makes no dif..I am mostly concerned about removing the assett form business use

I know when I got rid of a car previously and removed it I had to compare how much I sold the car for to what its depreciated value for the business was (even though I had used the mileage deduction) to see if I had to claim a profit on it or something

 

I am techincally still using it for business though...

1) Do I do the above anyway (and remove it from business use) 

2) enter 0 miles driven for business

3) claim the income from mileage reimbursement anyway and then turn around and write it off (or alternatively claim the reimbursement as income and then take an acutal expense deduction).......I have always just done the mileage deduction since it is easier for me to just keep mileage records

somehow number 3 seems wrong

 

 

They also reimburse me for hotel stays  this was also formerly reported as income that I turned around and write off. This is a complete wash so iam not worried about this

......Since Iam still stayig in hotels I can claim meal expenses the same as previsously as that is not reimbursed

 

 

ThomasM125
Expert Alumni

Business use of car

I assume you are self-employed (Form 1099-NEC) as opposed to salary employed (W-2 earnings). If you are salary employed, none of your employee business expenses are deductible under current IRS rules in 2023.

 

Since you were reimbursed for the business use of the auto, you can't deduct the costs associated with it. You can leave it in TurboTax, as long as you are not deducting depreciation or other expenses associated with it. If there is depreciation being deducted, you could report the auto reimbursement as other income up to the amount of the depreciation to offset the deduction.

 

You can deduct meals if you are away from your home overnight on business. However, the deduction is limited to 50% of the cost of the meals. 

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