mileage credit

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I purchased a building that has apartments up above and open area below. I have been collecting items to hopefully start an antique/vintage shoppe in the next 7-8 months. I have to drive a long distance sometimes to pick up the items. Can I use those miles of travel in my taxes?

Ask the Experts - MetLife II - Feb 2024

RobertB4444

Alumni - Intuit

A mileage deduction is something you can take once your business has begun operations. While you are setting your business up - and before you are entering the income and expenses - any costs that you have will become part of your "start up expenses". These costs will be amortized - or deducted in pieces - over the first 15 years you're in business. So while you can't deduct mileage this year keep track of all of the costs associated with getting this thing started. It will help later.

@Mellowdee

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MellowdeeAuthor

Level 2

Since I have and EIN associated with that building, I thought I could use the same LLC even though it was set up for the rentals. Could I do that?

RobertB4444

Alumni - Intuit

Are you actually operating the LLC? As in 'open for business'? Your comments above made it seem like you were still setting things up.

If you are open for business then you qualify for mileage.

If you are not open for business (or if the mileage that you're driving doesn't have an association with the business that you are currently running) then you can't deduct it now and you should add it to your start up costs.

@Mellowdee

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AmyC

Alumni - Intuit

If you are selling online and reporting a business, then you should declare the costs of the items purchased which includes travel expenses. If you did not receive a 1099-K for the sales, you can still report the business, the income, and the expenses on sch C- unless you have a partner or have declared to be a corporation - then use those forms.

About Schedule C (Form 1040), Profit or Loss from Business ...
Publication 535, Business Expenses

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Mike9241

Level 15

what are the apartments used for? if it's to store items for this proposed business, your business hasn't yet started, so any expenses incurred would not be deductible but be included in start up costs.

However, if you're renting the apartments, that is a different business than the antiques. the rental would go on schedule E, but none of the expenses for the proposed antique business would be deductible because it hasn't started. An individual can only have one EIN, but different activities even under the same business are separately reported and subject to specific tax laws regarding each business.

Mike9241