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Gas receipts for tax purposes?

9K views 45 replies 14 participants last post by  grandview (2006) 
#1 ·
For tax purposes do the gas receipts need to show the amount of gallons.
 
#27 ·
It's also pretty much an industry specific deduction.

Joe's Flower Shop would not be filling out this form.

So if your accountant isn't exposed to business' that would use it, maybe he doesn't know about it?

Prior to doing my own taxes, I had an old, and I mean he was 70 back in the 80's, old! He knew about this form then! And he was just a retired corporate accountant!
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#28 ·
I have heard the home office is often a high abuse area that they look into, but have never heard the credit for tax on fuel being a red flag item?
The offroad fuel tax credit makes the IRS' Dirty Dozen. The IRS complies its list of the most egregious schemes that it has on its radar for the year. The offroad fuel tax credit is on that list this year. I'm not saying to not use it. Just be aware that use of it will increase your chances of being audited.

http://www.toolkit.com/news/newsDetail.aspx?nid=12-303DirtyDozen
 
#29 ·
I read that link Richard.

Fuel Tax. While farmers and others who need to use fuel for off-highway business expenses are rightfully entitled to fuel tax credits, other taxpayers are claiming the credit erroneously. (Sorry, no matter how many potholes are in the expressway by the end of a Midwestern winter, that driving does not qualify as off-road.) Before you try and make that argument, remember the IRS lacks of a sense of humor and that fraud involving the fuel tax credit is considered a frivolous tax claim and can result in a penalty of $5,000

But I don't think our returns with Line A of our Schedule C reading Landscape/Lawn Maintenance would pop a flag.

They are saying in that article that "normal" people are claiming off highway use when they are infact using the highway.
 
#30 ·
I read that link Richard.

Fuel Tax. While farmers and others who need to use fuel for off-highway business expenses are rightfully entitled to fuel tax credits, other taxpayers are claiming the credit erroneously. (Sorry, no matter how many potholes are in the expressway by the end of a Midwestern winter, that driving does not qualify as off-road.) Before you try and make that argument, remember the IRS lacks of a sense of humor and that fraud involving the fuel tax credit is considered a frivolous tax claim and can result in a penalty of $5,000

But I don't think our returns with Line A of our Schedule C reading Landscape/Lawn Maintenance would pop a flag.

They are saying in that article that "normal" people are claiming off highway use when they are infact using the highway.
We were audited in 2008 for 2005-2006 and the off road credit was not even an issue
 
#31 ·
while I appreciate what you guys are saying I have an accountant for one reason and one reason only.

so I don't have to mess with doing the taxes and knowing anything about that stuff. I just want a guy who says I need this, this and that and just does it. and right now that's what I have. he tells me what he needs and I give it to him.

it's the accountants job to keep up with the law. not mine.
 
#32 ·
I would ask him why he's not getting you every deduction.

He will probably say that you didn't furnish him with gallonage or receipts, but a good accountant, knowing the business your in should have asked you.

It's a CREDIT, not a deduction.
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#34 ·
I personally find that on my diesel truck, expenses plus fuel is fairly close to mileage. It may vary a little each year, but overall it is a wash for me. Mileage may be slightly more sometimes. But, I just take expenses because I look at the mileage log as one more thing to keep track of. Expense receipts just go in the pile to be entered in the computer, and it's done. Plus the larger your operation (and the more trucks), the more people you are depending on to keep up with mileage logs. Such a pain. I found myself having to go back to the truck and look at my routes and trying to write in a week or more of mileage. Just turns out to be a headache for me.
 
#36 ·
I personally find that on my diesel truck, expenses plus fuel is fairly close to mileage. It may vary a little each year, but overall it is a wash for me. Mileage may be slightly more sometimes. But, I just take expenses because I look at the mileage log as one more thing to keep track of. Expense receipts just go in the pile to be entered in the computer, and it's done. Plus the larger your operation (and the more trucks), the more people you are depending on to keep up with mileage logs. Such a pain. I found myself having to go back to the truck and look at my routes and trying to write in a week or more of mileage. Just turns out to be a headache for me.
Why are you keeping mileage logs on a work truck?

Work trucks are for work 100% of the time.

Personal vehicles are for personal (non-business) use.

If you stick to that, there is no need to log anything. Just keep gas receipts.

It is so much easier that way, and there are NO mistakes.
 
#37 ·
Why are you keeping mileage logs on a work truck?

Work trucks are for work 100% of the time.

Personal vehicles are for personal (non-business) use.

If you stick to that, there is no need to log anything. Just keep gas receipts.

It is so much easier that way, and there are NO mistakes.
The truth is the IRS requires a mileage log even when you expense the work vehicle. The reason you don't hear more about it from accountants is accountants know better than to try to convince you to do it. If you are ever audited the auditor can require your mileage log books. Then you get to recreate them.

You'd be surprised at how often supposed work only trucks get used for personal travel. Here's a good example:

Tommy has a shop that is one mile from his house. Tommy drives his work truck everywhere he goes. What Tommy doesn't realize though is that the one mile trip from his house to his shop is not deductible. As soon as Tommy left his shop to go home the truck's true purpose went from business to pleasure.

There was a guy here at Lawnsite a couple of years ago that did some very creative numbers juggling. He and his wife jumped into his company truck, drove 300 miles to pick up personal furniture and then stopped at an auto parts store to buy spark plugs for his mower. Then he drove home and marked the entire trip down as business. Right. The auditors weren't born yesterday.
 
#38 ·
I am an accountant. That's why I was trying to help you. If you don't want to listen, fine. People are trying to help you save money, not learn the tax code!
relax dude,

why get so upset if someone doesn't follow your advise. I don't know you or anyone else on this site from Adam.

I prefer to stick with what my accountant says and does. a person I've met in person and have come to know and trust.

besides in my last post I said I'd mention it to him, did I not?

it's more than just the tax code I'm not interested in. I don't have the first clue about how to do my taxes. when I worked for someone else and all I had was w2 forms yes. but with my own business I don't know where to begin nor do I care to know.

I just give the accountant what he asks for. I have no idea why he needs the info he gets from me. I just know he needs it to figure my taxes and that's good enough for me.

I'm not interested in saving every last penny I can. if the easier way is costing me a little so what. it's pretty easy to just give him what he asks for and move on.
 
#39 ·
The truth is the IRS requires a mileage log even when you expense the work vehicle. The reason you don't hear more about it from accountants is accountants know better than to try to convince you to do it. If you are ever audited the auditor can require your mileage log books. Then you get to recreate them.
While that is likely true, my truck is a work truck. Used only for work, and bought by the business, and registered in the business name, with commercial insurance. It's a 2004 that just clicked over to 30K miles last month!

It's the landscapers driving their chromed up $70K Denali "work" pickups down to the OBX a couple times a summer that they're after.
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#40 ·
While that is likely true, my truck is a work truck. Used only for work, and bought by the business, and registered in the business name, with commercial insurance. It's a 2004 that just clicked over to 30K miles last month!

It's the landscapers driving their chromed up $70K Denali "work" pickups down to the OBX a couple times a summer that they're after.
I do agree that in your particular case you probably wouldn't throw up a red flag for mileage. They have averages for every type of business there is. Say there was a company that did $40,000 worth of business and logged 25,000 miles doing it. That might throw a flag. They also probably look at inconsistencies in reporting such as wild fluctuations in mileage from year to year.

I know that my mileage is pretty consistent with my gross income. As my income goes up and down so does my mileage. It took them a while to process my return this year. Longer than usual. I know that they were having software issues for a while. But my return took longer to process than what their software issues account for. I suspect it was pulled for an internal audit and they didn't find anything worth asking me about.
 
#41 ·
You can not cheat the IRS.

As long as your 100% honest, and have supporting documentation you'll be fine.

And yeah, the inconsistencies is what will get you an audit.

Yardguy, don't know your story, how long you've been in business, but your last few lines in post #38 kind of scare me. You DO need to know these things. You do need to question your accountant. Just like all LCO's aren't created equal, accountants aren't either!
 
#42 ·
You can not cheat the IRS.

As long as your 100% honest, and have supporting documentation you'll be fine.

And yeah, the inconsistencies is what will get you an audit.

Yardguy, don't know your story, how long you've been in business, but your last few lines in post #38 kind of scare me. You DO need to know these things. You do need to question your accountant. Just like all LCO's aren't created equal, accountants aren't either!
how about you run your way and I'll run my business my way. ok?
 
#44 ·
Come run with me Britsteroni!
 
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