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rated:
Can you get the 55 cent per mile deduction if on a rental car?

Theoretically you could pay some schmuck $10/hour to be your employee and drive around. He could drive an average of 60 miles/hour and the tax deduction would be 33 dollars per hour. The only other expense would be gas ($6 per hour at today's prices). The cost of the rental car is fixed at about $25 in my market.

Sweet math equation:
$10+6=$16
$33>$16

33-16=17

So a business could save 17 dollars per hour in taxes, correct? Poke some holes in my thought exercise.

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rated:
You can deduct rental car fees plus gas but you can't deduct the standard mileage rate because this includes depreciation.

It's hard to beat the government -- sorry man.

rated:
From my understanding, they allow the standard mileage rate if you lease. Isn't renting just a shorter term lease?

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phisher4 said:   You can deduct rental car fees plus gas but you can't deduct the standard mileage rate because this includes depreciation.

It's hard to beat the government -- sorry man.

  
The way to game this one is to buy a beater car as a company vehicle and skip the rental car.  There is no requirement that the car be new, or even use gasoline.  However you would need to have a REASON for Joe Snuffy to be driving around.  (it would need to be kept in a mileage log for the eventual audit)  But it WOULD hold up as long as the vehicle was on the books of the company and you had good logs.

rated:
zipjob said:   Can you get the 55 cent per mile deduction if on a rental car?

Theoretically you could pay some schmuck $10/hour to be your employee and drive around. He could drive an average of 60 miles/hour and the tax deduction would be 33 dollars per hour. The only other expense would be gas ($6 per hour at today's prices). The cost of the rental car is fixed at about $25 in my market.

Sweet math equation:
$10+6=$16
$33>$16

33-16=17

So a business could save 17 dollars per hour in taxes, correct? Poke some holes in my thought exercise.

  A deduction is just a deduction, it isnt a direct reduction of your taxes due.  A $33 deduction is going to save you around $12 in taxes.  $12<$16.

rated:
RedWolfe01 said:   
phisher4 said:   You can deduct rental car fees plus gas but you can't deduct the standard mileage rate because this includes depreciation.

It's hard to beat the government -- sorry man.

  
The way to game this one is to buy a beater car as a company vehicle and skip the rental car.  There is no requirement that the car be new, or even use gasoline.  However you would need to have a REASON for Joe Snuffy to be driving around.  (it would need to be kept in a mileage log for the eventual audit)  But it WOULD hold up as long as the vehicle was on the books of the company and you had good logs.

  Company established a PO Box 300 miles away. Schmuck was driving to pickup the mail daily. 

rated:

rated:
alamo11 said:   
RedWolfe01 said:   
phisher4 said:   You can deduct rental car fees plus gas but you can't deduct the standard mileage rate because this includes depreciation.

It's hard to beat the government -- sorry man.

  
The way to game this one is to buy a beater car as a company vehicle and skip the rental car.  There is no requirement that the car be new, or even use gasoline.  However you would need to have a REASON for Joe Snuffy to be driving around.  (it would need to be kept in a mileage log for the eventual audit)  But it WOULD hold up as long as the vehicle was on the books of the company and you had good logs.

  Company established a PO Box 300 miles away. Schmuck was driving to pickup the mail daily. 

  
Heh, I actually DID that job, sorta.  Distribution interoffice courier for a while in the military in Germany. I drove 5 days a week from my community to different cities delivering interoffice mail.  (re-usable "shotgun" envelopes)  I put a LOT of kilometres on a little dark green VW Golf.  Easy job, and I had the timing down so I was at the "good"  (for relative values of good) mess halls along the routes.  Karlsruhe-Heidelberg-Mannheim run M/W/F and the Karlsruhe-Kaiserslautern-Pirmasens run on T/Th.  

rated:
Glitch99 said:   
zipjob said:   Can you get the 55 cent per mile deduction if on a rental car?

Theoretically you could pay some schmuck $10/hour to be your employee and drive around. He could drive an average of 60 miles/hour and the tax deduction would be 33 dollars per hour. The only other expense would be gas ($6 per hour at today's prices). The cost of the rental car is fixed at about $25 in my market.

Sweet math equation:
$10+6=$16
$33>$16

33-16=17

So a business could save 17 dollars per hour in taxes, correct? Poke some holes in my thought exercise.

  A deduction is just a deduction, it isnt a direct reduction of your taxes due.  A $33 deduction is going to save you around $12 in taxes.  $12<$16.

  This... it's a tax deduction, not a tax credit...

You just paid $16 for about a $10 or $12 reduction in your taxes... great business plan!

rated:
What about when renting out your own car on a site such as Turo? It will obviously easily cancel out any earnings from the site but can you deduct further and end up with a tax deduction simply from renting your car? It seems ridiculous since then millionaires could by car rental lots just for the tax deduction.

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Is it just me or does it seem like FWF has had more dubious scheme/questionable legality posts than usual?

rated:
Core premise of tax deductions is that you can't deduct more than something actually costs you.

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cestmoi123 said:   Core premise of tax deductions is that you can't deduct more than something actually costs you.
  This is not true when it comes to business expenses.  

rated:
antiandrewling said:   
cestmoi123 said:   Core premise of tax deductions is that you can't deduct more than something actually costs you.
  This is not true when it comes to business expenses.  

  
There are certain cases (such as the mileage cost) where you're allowed to use a flat rate, but the underlying principle holds. 

rated:
itsmeherelol said:   hello all
I started using turo not long to rent out my car and now i have several with good experience with renters.
because i am busy with day job i recently found this company www.prontodelivr.com [l="[L=http://www.prontodelivr.com"]http://www.prontodelivr.com]http://www.prontodelivr.com"]http://www.prontodelivr.com[/l]  that will offer FREE* delivery to anyone who rent out your car so you litterally have nothing to do just RELAX and watch your passive income pour in.
lmk if you have any question about the sharing economy, I love it.

  What has this got to do with the thread?
What is your relationship with this company?
 

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