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    weitings's Avatar
    weitings Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Mar 3, 2010, 01:45 PM
    Car mileage tax deduction
    I just joined some direct sales organization which effectively makes me Self Employed.

    I know that for SE, we are allowed to use business-related car mileage as tax deduction. I am thinking about using the per-mile rate rather than actual expenses.

    However, the car in question is NOT under my name even though I drive it (for business), and my name IS on the insurance. I think my Mom is listed as the actual owner of the car (but it's not her only car) and we live together.

    Given this situation, can I still claim the mileage as tax deduction for business?

    Thanks!!
    smoothy's Avatar
    smoothy Posts: 25,492, Reputation: 2853
    Uber Member
    		  
    #2

    Mar 3, 2010, 01:57 PM

    For starters, I hope you know you need to keep an accurate DAILY log with beginning miles... ending miles and trip miles... who it was to and what purpose, and who was driving (yourself), or the IRS might no accept it on an audit.

    And I mean a dedicated log book you keep in the vehicle... not scraps of paper.

    I don't know about the ownership issue end of it however.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Apr 26, 2010, 02:25 PM
    To use the standard mileage deduction, you MUST own or lease the car.

    If the car is in your mother's name, then you can only claim actual expenses in claiming deductions associated with your business.
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