My DH is now self-employed and I am so confused with all the tax stuff. He gets $20 a day per diem through the company. Now the crew that he is on for contracting is my uncle (superintendent), my DH and my cousin. They work out of state all week and are home on weekends. My question is this. My uncle is renting a car weekly to travel to and from the work sites. It is in his name, however we are taking money out of DH's check and giving money to my uncle as an expense of renting a car. Can we claim that on our taxes? And how do we prove that we gave him that money for the rental car? Also how will mileage work since they are splitting the rental by three. Do we split the mileage by three also in regards to claiming that on our taxes? And how do we prove mileage? Can we just keep a written log? I have been doing that with mileage from mapquest. Is that sufficient or what do we need for that? And last question, since he gets a per diem in his check weekly, how does that work on our taxes? Thanks for the help. Hopefully this didn't confuse anyone either.
Keri