With vehicles, as I understand it, you can either claim it as a business vehicle, meaning you use it a certain percentage as a business vehicle. Or, you can take mileage for the times you're actually USING it. If you claim it as a business vehicle, you gotta track all expenses, maintenance, gas, percentages, the whole Enchilada. I believe DaveT would answer this much better than I have, however...
You can do one or the other above this post, but I think you may need a business name. I think taking mileage is a better way, better return. It's pretty simple, its on the 1099 form. Someone else could answser that better. Sorry
Because you are asking the question, I am assuming that the vehicle in question is your family car and not exclusively a business owned vehicle.
In this case, your cost of gas is principally for errands, trips, or commutes that are unrelated to your "I Buy Houses" business. The fact that you are using your vehicle as a moving billboard is irrelevant to the primary use of the vehicle. For this reason, the gas is not a legitimate business expense unless the vehicle is used exclusively for business.
Now, you can recover the cost of gas used for your business indirectly. Keep a log of your trips when you actually go look at one of your leads. At the beginning and again at the end of the year, record the odometer reading. For each of your business trips, record the date, time, starting and ending mileage, address of your destination and the reason for the trip. Add up all your mileage throughout the year and take a business expense (and prorated depreciation expense) based upon your business mileage use.
Of course, you do have the opportunity to claim actual costs instead of just using your actual mileage, but when you mix business with personal use you will just use the actual mileage anyway to prorate your actual total costs between business use and personal use.
Don't forget to also take a business expense for the cost of the signs.
With vehicles, as I understand it, you can either claim it as a business vehicle, meaning you use it a certain percentage as a business vehicle. Or, you can take mileage for the times you're actually USING it. If you claim it as a business vehicle, you gotta track all expenses, maintenance, gas, percentages, the whole Enchilada. I believe DaveT would answer this much better than I have, however...
You are not cheapskating at all.
This is a legit business expense. You have every right to reduce your taxable income to the LOWEST amount possible, within the law.
Someone else set them all up, so you might as well take advantage of them
You can do one or the other above this post, but I think you may need a business name. I think taking mileage is a better way, better return. It's pretty simple, its on the 1099 form. Someone else could answser that better. Sorry
Lance
Because you are asking the question, I am assuming that the vehicle in question is your family car and not exclusively a business owned vehicle.
In this case, your cost of gas is principally for errands, trips, or commutes that are unrelated to your "I Buy Houses" business. The fact that you are using your vehicle as a moving billboard is irrelevant to the primary use of the vehicle. For this reason, the gas is not a legitimate business expense unless the vehicle is used exclusively for business.
Now, you can recover the cost of gas used for your business indirectly. Keep a log of your trips when you actually go look at one of your leads. At the beginning and again at the end of the year, record the odometer reading. For each of your business trips, record the date, time, starting and ending mileage, address of your destination and the reason for the trip. Add up all your mileage throughout the year and take a business expense (and prorated depreciation expense) based upon your business mileage use.
Of course, you do have the opportunity to claim actual costs instead of just using your actual mileage, but when you mix business with personal use you will just use the actual mileage anyway to prorate your actual total costs between business use and personal use.
Don't forget to also take a business expense for the cost of the signs.