# 2020 taxes



## Toby2 (Jun 16, 2018)

Say I made 10k on GH or DD. What kind of mileage can I deduct with out raising any red flags. I don’t want to under estimate also


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## Daisey77 (Jan 13, 2016)

Toby2 said:


> Say I made 10k on GH or DD. What kind of mileage can I deduct with out raising any red flags. I don’t want to under estimate also


Whatever your mileage log says you drove. If you don't have your log for whatever reason, you have to go off of what the companies told you you drove, if they give you that info.


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## Seamus (Jun 21, 2018)

Toby2 said:


> Say I made 10k on GH or DD. What kind of mileage can I deduct with out raising any red flags. I don’t want to under estimate also


Don't know what to tell you for 2020. DD and GH don't track your mileage and even if they did (like Uber does) it would be far from accurate and shortchange you. Since you have no documentation if you get audited there is no "guesstimate" they'll accept. There is no known "red flag" on mileage. Most of the rocket scientists on the forum will tell you to just put a mileage number that offsets most of your revenue and hope you don't get audited.

Do yourself a favor and start keeping a mileage log to document your mileage. Every year an unlucky few post about how they got their mileage deduction disallowed because they had no mileage log. Track all your mileage by day driveway to driveway.


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## UberBastid (Oct 1, 2016)

You know how many miles (approx) you drove that car total for the year?
How much do you use it for business only?
If you have two cars, I would say you used it 95% business.
If you only have the one ... I'd go with about 70%.

They will not audit you. The IRS is weak and in disarray. President Joe is gonna hire a lot of people to watch us; but it'll be a couple years (if ever) they become effective.


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## Ted Fink (Mar 19, 2018)

UberBastid said:


> They will not audit you. The IRS is weak and in disarray.


INCORRECT. I was audited recently for my 2018 and it was done thoroughly. Luckily for me, I keep the required records and I don't fudge numbers. It might be true that the chances of getting audited are low. But if you are, and you can't back up your shit with an ACTUAL LOG, your deduction will be disallowed. AKA, you will owe money. Plus fees and penalties.

ALWAYS be honest on your taxes. We get lots of legitimate deductions. But make sure your paperwork is in order!


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## Seamus (Jun 21, 2018)

Ted Fink said:


> INCORRECT. I was audited recently for my 2018 and it was done thoroughly. Luckily for me, I keep the required records and I don't fudge numbers. It might be true that the chances of getting audited are low. But if you are, and you can't back up your shit with an ACTUAL LOG, your deduction will be disallowed. AKA, you will owe money. Plus fees and penalties.
> 
> ALWAYS be honest on your taxes. We get lots of legitimate deductions. But make sure your paperwork is in order!


People have a false notion of some agent calling them in at a high cost to the government. What most don't realize is in most cases it's a mail audit which costs next to nothing. In the case of mileage deductions, you simply receive a letter asking you to submit your mileage log. If you can't submit one you get a letter back with the deduction disallowed and a recalculated tax bill! It's actually simple and cheap for the IRS.

A couple years ago I got the request to submit my mileage log. I submitted it and got a letter back saying "accepted as submitted." Done. I use TripLog.


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## Ted Fink (Mar 19, 2018)

Seamus said:


> People have a false notion of some agent calling them in at a high cost to the government. What most don't realize is in most cases it's a mail audit which costs next to nothing. In the case of mileage deductions, you simply receive a letter asking you to submit your mileage log. If you can't submit one you get a letter back with the deduction disallowed and a recalculated tax bill! It's actually simple and cheap for the IRS.
> 
> A couple years ago I got the request to submit my mileage log. I submitted it and got a letter back saying "accepted as submitted." Done. I use TripLog.


I got audited for everything for that year. Comprehensive. But it was by mail. And it turned out fine.

It's easy if you keep proper records, which you and I both do. But for the OP... if you don't have a log you better create one and make sure it's reasonable.

Also note for everyone, I was asked to submit repair bills one at or near the beginning of the year and one at or near the end of the year, to prove that my car had that many miles on it. This could be due to the fact that my mileage deduction was ENORMOUS. (Rural market)


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## UberBastid (Oct 1, 2016)

Ted Fink said:


> can't back up your shit with an ACTUAL LOG, your deduction will be disallowed. AKA, you will owe money.


Yes.
That's true.

The last time I got audited it was for a year that I took deductions in total of $6500. 
I had ZERO paperwork to back it up.

After THREE YEARS they decided that I had over reported almost $500 in expenses, and that resulted in a bill due of $67.25 -- I made arrangements and made monthly payments of $7.58 for twelve months.

Yea ... that was BRUTAL.

And, I actually cheated to the tune of over $4000.

In our tax bracket -- it is a loser for the IRS.

My government lies and steals and cheats me EVERY DAY. 
I only do it on April 15.

.


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## Older Chauffeur (Oct 16, 2014)

UberBastid said:


> Yes.
> That's true.
> 
> The last time I got audited it was for a year that I took deductions in total of $6500.
> ...


So much for the rumor that the IRS doesn’t go after the small fry.🧐


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## UberBastid (Oct 1, 2016)

Older Chauffeur said:


> So much for the rumor that the IRS doesn’t go after the small fry.🧐


And small fry makes for small 'recoveries' for The Service.
They collected a few hun from me ... how much did it cost them?
WE are not their target. They have to do a few of us every year, but we're not their target. We are the audits that the newbie auditors get assigned to do, as part of their training.

OP is correct in his thinking: "How much do I claim so as not to attract attention? What is the 'norm'?"

.


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## Ted Fink (Mar 19, 2018)

UberBastid said:


> Yes.
> That's true.
> 
> The last time I got audited it was for a year that I took deductions in total of $6500.
> ...


So I understand that and I'm not judging you for it. But it does carry a risk. We're all adults here, if you don't want to be honest with the feds, I don't blame you because like you said, they been stealin from you since you was born. But for me, I just play it straight and then i have no issues. Everyone can make their own choice.


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## Oscar Levant (Aug 15, 2014)

Toby2 said:


> Say I made 10k on GH or DD. What kind of mileage can I deduct with out raising any red flags. I don’t want to under estimate also


Well, I do twice that and about 350 miles per week on GH.
So, cut it in half, I guess. I'm assuming that $10k is 'per year', right? Because my gross is based on per year though I wouldn't know if it should make any difference in the calculation. I don't think there is a 'red flag' number, only a year to year consistency number for the stats you turn in. If you have been making $30k per year, and all of the sudden, you make $400k, that might send them snooping.


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## Frontier Guy (Dec 27, 2015)

Seamus said:


> People have a false notion of some agent calling them in at a high cost to the government. What most don't realize is in most cases it's a mail audit which costs next to nothing. In the case of mileage deductions, you simply receive a letter asking you to submit your mileage log. If you can't submit one you get a letter back with the deduction disallowed and a recalculated tax bill! It's actually simple and cheap for the IRS.
> 
> A couple years ago I got the request to submit my mileage log. I submitted it and got a letter back saying "accepted as submitted." Done. I use TripLog.


Yep



Older Chauffeur said:


> So much for the rumor that the IRS doesn’t go after the small fry.🧐





UberBastid said:


> And small fry makes for small 'recoveries' for The Service.
> They collected a few hun from me ... how much did it cost them?
> WE are not their target. They have to do a few of us every year, but we're not their target. We are the audits that the newbie auditors get assigned to do, as part of their training.
> 
> OP is correct in his thinking: "How much do I claim so as not to attract attention? What is the 'norm'?"


The IRS goes after the "small fry", because the small fry isn't hiring a CPA to do their taxes, they can't afford a tax lawyer to defend them, and they aren't well versed in the tax code. Yes, most audits are done by mail, and the IRS has all the time in the world. My audit of 2011 was started at the end of 2013, it took 3 yrs to complete, when I received the first letter from them requesting documents, they gave me 10 days to comply. No possible way I could do that, in part because I was going to have to submit 900 pages of documentation. It took me 2 hours on hold to get a 60 day extension. How many people have 2 hours to waste on hold? Then, they drag their feet, when I submitted those 900 pages, it took 4 months before I got a letter back from them, requesting something else. At that point I started calling tax Attorney's. The IRS wanted $5K from me, most tax Attorney's won't touch anything less than $10K, and some won't touch anything less than $50K. The IRS is also very good at using scare tactics, at threats and coercion, and they are getting worse about it. When I demanded an in-person audit, the woman who took the case reviewed everything, it took 7 months for her to be assigned, she resorted to threatening my employer with an audit if they didn't produce documents within 10 days (my boss was 9 months pregnant and due any day at the time, the companies CPA told the IRS to pound sand and took 2 months to provide the information they requested). In my case, as a trucker, one thing that is frequently taught in truck driving schools, is the basics of what is/isn't deductible for drivers, and how to claim portions of those amounts too. The auditor tried to tell me that items I was deducting weren't deductible, when I asked her to prove it in writing, she said she didn't have to, and that I had to prove they were deductible. After I let her close out her case, I demanded a trial, the tax court appointed a mediator to sit down with me, in addition to a box of documents, I also brought dozens of pages of the IRS manual that I printed out, to support my case, I made them pull their own books off the shelf. Most people aren't going to do that, hence, if they go after 50 small fry, and nail 40 of them, they make their money.

Oh, and we are not the cases the "newbies" get, the auditor that went after me, drove an AMG E-class, two of the tax Attorney's I spoke with knew of her reputation, and wished me good luck. I came to find out later, that in the Denver area, she was specifically assigned to go after truck drivers and trucking companies, and she relished her job.


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