Can a contractor expense all his mileage if the client reimburses the contractor for gas and gives the contractor a certain dollar amount per day?

Forum|Forum|6 years ago
March 27, 2020
13 replies
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qbteachmt

Level 15

You've combined things that do not Combine.

Your client has Business miles, some of which have nothing to do with Customer jobs, such as picking up shop supplies. They track and report all Business Mileage per the allowance method, then.

When customers pay us, that is Revenue. It doesn't matter if I justify it as Mileage or Hours or whatever. It's just part of Gross Revenue.

The "certain dollar amount per day" is also part of Gross Revenue.

Don't yell at us; we're volunteers

T

TaxGuyBill

@qbteachmt wrote:
When customers pay us, that is Revenue. It doesn't matter if I justify it as Mileage or Hours or whatever. It's just part of Gross Revenue.

Not true. "Reimburse" implies an Accountable Plan. If that is the case, the contractor should NOT report it as income (and in turn, does not report the expense).

I suspect that would disqualify the Standard Mileage Rate, so Actual Expenses would need to be used.

T

Terry53029

Intuit Community Champion

TaxGuyBill I agree with @qbteachmt. The original poster said a client reimbursed him. I have seen employers have an accountability plan for employees, but this is an independent contractor, and the very definition of independent contractor would not provide for an accountability plan with a client. Just my thinking 🙂

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