# Tax issues.



## Mad4a (Feb 12, 2020)

Hello everybody! Made 26k in 9k miles. Any suggestions how to deduct a lot? 
thanks!



Mad4a said:


> Hello everybody! Made 26k in 9k miles. Any suggestions how to deduct a lot?
> thanks!


Car financed


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## Daisey77 (Jan 13, 2016)

Mad4a said:


> Hello everybody! Made 26k in 9k miles. Any suggestions how to deduct a lot?
> thanks!
> 
> 
> Car financed


There's no real option. You could tell the truth and pay your taxes or you lie and don't&#129335;&#127996;


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## Mad4a (Feb 12, 2020)

Daisey77 said:


> There's no real option. You could tell the truth and pay your taxes or you lie and don't&#129335;&#127996;


I'm gonna pay for sure, but I'm choosing between mileage or not. Just asking the best way how to save more)


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## Fletch2020 (Mar 23, 2020)

Two years ago made $50k on 60k miles, amazing our differences .


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## Daisey77 (Jan 13, 2016)

Mad4a said:


> I'm gonna pay for sure, but I'm choosing between mileage or not. Just asking the best way how to save more)


Run them both ways, expenses and mileage and see which one makes you pay less. I do them both ways every year and then file whichever ones in my best interest. Typically mileage ends up being better.



Fletch2020 said:


> Two years ago made $50k on 60k miles, amazing our differences :wink:.


Maybe you guys run different platforms? I'm guessing he must run black. Perhaps select or XL. Do you run X? I run Select & XL and I was at $70K with 50K mi


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## Fletch2020 (Mar 23, 2020)

Daisey77 said:


> Run them both ways, expenses and mileage and see which one makes you pay less. I do them both ways every year and then file whichever ones in my best interest. Typically mileage ends up being better.
> 
> 
> Maybe you guys run different platforms? I'm guessing he must run black. Perhaps select or XL. Do you run X? I run Select & XL and I was at $70K with 50K mi


I was running X with a ton of dead heads.


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## dauction (Sep 26, 2017)

Mad4a said:


> Hello everybody! Made 26k in 9k miles. Any suggestions how to deduct a lot?
> thanks!
> 
> 
> Car financed


26K INcome - standard deduction sinle 12K = 14K - mileage deduction 9K miles * .58 per mile - $5,250 . 14K - 5,250 = $8,750 * 10 federal taxes = *$875* due..if you don't have it simply pay them $80 a month


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## Mad4a (Feb 12, 2020)

Thanks to everybody!


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## FLKeys (Dec 27, 2018)

You made $2.89 per mile?


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## Seamus (Jun 21, 2018)

the standard deduction goes on your 1040 AFTER you have already done your business income/loss on schedule C and transferred it over.

There are a lot of other expenses besides mileage that can be legally be written off as a business expense. If you have never filled out a schedule C or have never filed business taxes before then do yourself a favor and go to a tax prep professional. You may think it's better not to spend the money but if you screw yourself out of less taxes than free wasn't "free".


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## [email protected] (Feb 10, 2020)

Run it both ways. I used TurboTax and with the standard mileage deduction, I had a gain of...I don't remember...but when I used my actual expenses (my car is moderately priced and it takes premium gas at an average of 23mpg), I came up with a loss of $4k. 👍

All miles driven were to my day job, so having a tax loss to drive to work is ideal (offsets my primary business income).


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## Older Chauffeur (Oct 16, 2014)

dauction said:


> 26K INcome - standard deduction sinle 12K = 14K - mileage deduction 9K miles * .58 per mile - $5,250 . 14K - 5,250 = $8,750 * 10 federal taxes = *$875* due..if you don't have it simply pay them $80 a month


@Seamus already covered the Schedule C/1040 issue, but I think you are forgetting the SECA contribution of 15.3% of net profit. Maybe the OP isn't deducting U/L commissions and the $26k is their gross, not his?
He mentioned his car is financed. If he goes with actual expenses he can deduct interest prorated for business vs personal use. That might be better than the SRM, but if this is his first year and he chooses actual expenses he's stuck with that method in future years with that car.


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## DoubleDee (Apr 22, 2019)

Mad4a said:


> I'm gonna pay for sure, but I'm choosing between mileage or not. Just asking the best way how to save more)


Claim that you drove 60K miles. Easy peasy.


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## Older Chauffeur (Oct 16, 2014)

DoubleDee said:


> Claim that you drove 60K miles. Easy peasy.


Yeah, *that* won't raise any red flags, for sure. :laugh:


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## Daisey77 (Jan 13, 2016)

DoubleDee said:


> Claim that you drove 60K miles. Easy peasy.


 And claim 10 kids . . . Look at that. Suddenly he's rich!!

How you doin?


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