Postal Letter

I am an independent contractor for a national delivery company. I own three delivery vans and and have two?

employees delivering for me also. In terms of mileage deductions, what am I allowed to deduct total? The odometers for all three vans combined turned over 190,000. Am I allowed to deduct the full amount for all three vans less commuting miles, i.e. (190,000 - 45,000) * .55 = $79,750? I'm aware that I would be taking the mileage rate in lieu of actual expenses incurred. Thanks in advance.

Public Comments

1. As long as you have contemporaneous mileage logs, sure. (Without the logs, you get $0.)
2. Dear Wags: YES! As long as the mileage is business qualified miles and each day an odometer reading is taken. Take a reading in the morning and again after the day is complete. It would be wise to back up these records with any oil changes as the garage must record miles at the time of the oil change. Supply your drivers with good logs. This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provide. Click on my profile to read more. Errol Quinn Enrolled Agent
3. yes this is a business expense you report on your sch C and yes the rate is correct and once you choose that method you can't bounce back and forth between the actual and mileage rate