Posts Tagged ‘irs rate’
Tax deductions for using personal car for business?
Posted by admin in US Tax Questions on July 22nd, 2010
So I’ve asked similar questions before but my situation has changed since then. I am currently employed with the local paper one night a week collecting old papers and quarters from their racks. I drive my own car around for about 2 hours. The route itself is about 20 miles and obviously always the same. I was originally hired as an independent contractor, but now I am on the payroll so my income taxes will be handled normally.
My question now is what kind of deductions can I claim for using my car in this manner? Can I claim gas and maint. expenses like oil changes? Or can I only claim miles? The employer will be paying me some weird rate of $.35 per mile instead of the IRS rate, so I wonder if that comes into play anywhere. What kinds of records do I need to keep? I was just going to do an excel spreadsheet for the miles, and keep all my gas receipts obviously. I’m also only keeping the receipts to the gas I buy before doing the route.
Appreciate anyone’s help. Thank you!