@ThomasVenner wrote:
Hi TurboTax,
If my parents bought me a car and I use it for delivery, can I deduct my mileage on the vehicle. Similarly, if my parents pay for my phone bill and I use my phone for work (Doordash), and buy me equipment for delivery, can I still deduct those expenses.
Thank you,
Thomas
1. You can only use the standard mileage deduction on a vehicle you own, that is titled and registered in your name. You aren't clear on this.
2. You can't deduct any expense you don't pay for yourself. Even if you paid your own phone bill, you can only deduct the percentage of use that corresponds to work, and you have to keep some kind of records to show the IRS (if you are audited) how you determined the percentage. But if you don't pay the expense, you can never deduct it.
3. If you have an asset with a durable life of more than 1 year, you depreciate it in business, you don't deduct it as an expense. Depreciation means deducting part of the cost over the life of the item, usually 3, 5, 7 or more years, depending on what it is. You can list an asset as a business asset for depreciation if you own it, even if it was a gift to you. If you don't own it (it is borrowed or rented) you can't list it as a business asset. If your parents gifted you items for your business that would be expenses (supplies that are not durable and would be expected to last less than a year) then you can't deduct any expense you did not pay for yourself.
