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Tax question

Discussion in 'Business Operations' started by dfor, Feb 24, 2004.

  1. dfor

    dfor LawnSite Senior Member
    Posts: 821

    I generally take the standard deduction for mileage. 15,000 miles x .36 cents per mile. I know that I can't take fuel, maintenance, upkeep, etc. if I do it this way. Can I also take the deduction for insurance, or is it included in the .36 cents per mile?
  2. Lombardi

    Lombardi LawnSite Senior Member
    Posts: 538

    The insurance would be included in your itemized expenses if that is what you chose to use. The mileage deduction is just that, mileage only. I always use the mileage deduction but I still keep track of fuel, oil, tires, insurance, etc. since it is an expense.
  3. DJL

    DJL LawnSite Member
    Posts: 237

    I believe you cannot deduct AUTO insurance, AUTO fuel, and/or AUTO expenses if you are paying yourself the .36/mile.

    Think about it...the 0.36 per mile is calculated by some analyst that figures what the cost of insurance, maintenance, fuel, etc. is. I would be very careful about deducting both .36 per mile AND auto expenses. I would not want to explain that one in an audit. Best bet, check with your accountant.
  4. Doogiegh

    Doogiegh LawnSite Senior Member
    Posts: 871

    Now, I know it's NOT the IRS Website, but doing a quick google search showing 2002 information reported this:


    If you choose to take the standard mileage rate, you cannot deduct actual operating expenses — for example, depreciation, maintenance and repairs, gasoline and its taxes, oil, insurance and vehicle registration fees. These costs are already factored into the standard mileage rate.

    You can deduct any business-related parking fees and tolls — for example, a parking fee you have to pay when you visit a customer’s business or residence. But you cannot deduct fees


    I would continue to ask your accountant, but it seems like car insurance can not be deducted..

    I did a search and found IRS Publication 463, http://www.irs.gov/pub/irs-pdf/p463.pdf

    Do a search in the document for the word INSURANCE and you'll see you can't deduct your insurance policy if you do the standard deduction.
  5. impactlandscaping

    impactlandscaping LawnSite Silver Member
    Posts: 2,332

    We take standard .36 mileage deductions on three vehicles, but take actual cost on our plow truck since it doesn't see the mileage the other trucks do. All insurance costs should be covered separately in your itemization, it's a cost of doing business, isn't it?

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