Acutal Expenses or Mileage Deduction

Discussion in 'Business Operations' started by grasshopperslawn, Jan 25, 2008.

  1. grasshopperslawn

    grasshopperslawn LawnSite Senior Member
    Messages: 293

    Hey just wondering which option you guys choose at tax time . My accountant keeps insisting that I take the mileage, but I think I come out better with actual expenses because of maintenance being my trucks are older also the insurance and note I can right off . What do you guys do? Thanks
  2. RGM

    RGM LawnSite Senior Member
    Male, from Baltimore Md
    Messages: 979

    i have been using mileage for about 10 years [think its 48 cents this year] now it works for me and i have heard of someone being audited for expenses. Most of us guys use our trucks for other purposes and the tax man knows that
  3. Johnson LCO

    Johnson LCO LawnSite Senior Member
    Messages: 336

    I have been wondering the same thing. Off the top of my head I think that the actual expenses would be better. If you are paying 3.50 for a gallon of diesel and getting 13 miles to the gallon, 59.8% of that 45.8 cents/miles is eaten up just by fuel. That does not include insurance, maintenance, parts, repairs, etc. I guess it depends largely on the age of your vehicle and how many miles you put on it.
  4. Grits

    Grits LawnSite Silver Member
    from Florida
    Messages: 2,994

    My accountant recommends mileage, too. But you would need to figure it both ways and see which is the best for you.
  5. lawnMaster5000

    lawnMaster5000 LawnSite Senior Member
    Messages: 591

    if your vehicle is used more than a certain percent for personal use you are required to take the mileage deduction. I dont remember what the percent is.

    If you question which way is better, then calculate them both and see. Ask your accountant about the legalities of either option.
  6. grasshopperslawn

    grasshopperslawn LawnSite Senior Member
    Messages: 293

    I use it for business only
  7. landscaper22

    landscaper22 LawnSite Senior Member
    Messages: 845

    If you are using it for both personal and business use then mileage would make sense. It would be the best way to cover your butt. If it is used only for business then the correct answer to your question would be which ever number is higher. I have two trucks. I write off expenses on the older one and use mileage on the newer one. In some cases trying to remember to write down the mileage and keeping up with it can be a pain. So, I don't even try to keep up with the mileage on the older truck. Something is always breaking on it and it drinks some gas, so, expenses would be the way to go on it for me.
  8. zz4guy

    zz4guy LawnSite Senior Member
    Messages: 901

    Unless you are using the truck 100% for business and not taking mileage deductions, you must keep a log book to know how much you drove it for business/personal.

    You have to multiply your expenses by the amount of miles you used it for business.

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