# Can i deduct expenses on a car that I didn't own i 2015?



## Alexuber (Jan 12, 2016)

My girlfriend and myself financed a car in 2015. At the time, my credit was really bad so we decided to put only her on the bank loan (lower interest rate), and the bank held the title (until we pay it off). After we financed the car, she was put on the vehicle registration but she added me on her auto insurance for the vehicle. So legally, I was able to use the car and I used the car to work part time as an independent contractor. Now in March of 2016 my credit has improved so we decided to refinance the car and she added me on the bank loan. Now I am on the vehicle registration. However, the problem is, now I have received my 1099 for 2015 income earned, and now I went to a tax preparer and she told me that since I didn't own the car in 2015, that I cannot deduct mileage expense nor any expenses, except gasoline. I have receipts of all expenses, from gas, auto insurance, car repairs, car washes. Most of the miles used on the car in 2015 where related to my driving business, and I paid for all the expenses (car insurance, car payments, etc.). However, Turbo Tax says that I can deduct actual expenses, even if I don't own the vehicle. But the tax preparer lady told me I can't deduct anything except gasoline. now i'm confused. And I have another question, how will the IRS find out that I didn't own the car in 2015 since "technically" the bank still owns the car (it's financed), and today (2016) I am on the bank loan and on the vehicle registration. So if I decided to deduct mileage standard or actual expenses, how will the IRS find out that I didn't own the car in 2015? But how am I supposed to run a business without paying for car repairs, auto insurance, tire changes, etc.? I spent a large chunk of my income on the car itself to keep it running for my business, I don't think it's fair that I can't write that off. Any advice is appreciated. Thanks.


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## UberTaxPro (Oct 3, 2014)

Alexuber said:


> My girlfriend and myself financed a car in 2015. At the time, my credit was really bad so we decided to put only her on the bank loan (lower interest rate), and the bank held the title (until we pay it off). After we financed the car, she was put on the vehicle registration but she added me on her auto insurance for the vehicle. So legally, I was able to use the car and I used the car to work part time as an independent contractor. Now in March of 2016 my credit has improved so we decided to refinance the car and she added me on the bank loan. Now I am on the vehicle registration. However, the problem is, now I have received my 1099 for 2015 income earned, and now I went to a tax preparer and she told me that since I didn't own the car in 2015, that I cannot deduct mileage expense nor any expenses, except gasoline. I have receipts of all expenses, from gas, auto insurance, car repairs, car washes. Most of the miles used on the car in 2015 where related to my driving business, and I paid for all the expenses (car insurance, car payments, etc.). However, Turbo Tax says that I can deduct actual expenses, even if I don't own the vehicle. But the tax preparer lady told me I can't deduct anything except gasoline. now i'm confused. And I have another question, how will the IRS find out that I didn't own the car in 2015 since "technically" the bank still owns the car (it's financed), and today (2016) I am on the bank loan and on the vehicle registration. So if I decided to deduct mileage standard or actual expenses, how will the IRS find out that I didn't own the car in 2015? But how am I supposed to run a business without paying for car repairs, auto insurance, tire changes, etc.? I spent a large chunk of my income on the car itself to keep it running for my business, I don't think it's fair that I can't write that off. Any advice is appreciated. Thanks.


You can only deduct car expenses associated with a car that you own. However, if you pay the person who owns the car a fee, you can deduct this payment as a business expense. The owner of the car must report as income any money received by you as income. You should've just married your girlfriend. LOL. If you're married and file jointly the vehicle can be in either name.


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## LAuberX (Jun 3, 2014)

If Uber or Lyft paid you, deduct the miles.

Easy.


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## UberTaxPro (Oct 3, 2014)

Jeez.....how do you report a moderator? LOL


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## therides (Mar 1, 2016)

Lol


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