My client has 3 vehicles he uses exclusively as rentals through Turo. His clients must bring the vehicles back at the same fuel level as when they took it so he rarely has any fuel expenses. Can he still claim the standard mileage deduction?
His Turo income is $20k. Each of the vehicles has between 15-20k of mileage. The standard mileage deduction is over $30k.
Doesn't seem right.
"fuel is a component of the standard mileage deduction"
In the past for taxable personal benefit for use of a company car, when the employee paid for fuel in the vehicle, I was told to discount the mileage allowance rate by that amount, and still being able to use the mileage as Allowance in lieu of Actual Expenses. Does that seem to apply to Turo?
@qbteachmt If there were a realistic and reasonable way for the Turo franchisee to track the fuel that the renters put in the car you could probably net it out from mileage expense.... i think at very least it’s a stretch.
Your example works for that situation because there’s record of the actual fuel cost and personal vs business use miles. Here there’s no record of fuel costs.
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