Standard Mileage on 1065?

[mvp2885]

There is a "other deductions worksheet" on ProSeries 1065, and there is a section called automobile and truck expense. Can I put the "standard mileage" rate under this section? Like if they drove 12,000 business mileage, can I multiple that by the standard rate and put that amount in there? I am just trying to figure out where I put the mileage for a 1065. New to filing them out. Any help would be appreciated. Thank you. 

[IRonMaN · Accepted solution]

Did the partnership own the vehicle?

As a side note, be very careful and do a lot of homework before preparing the return.  Sometimes, it is safer to refer a client elsewhere than mess things up for a client -------------------- they tend to get really mad and that is never good.

[mvp2885]

I am actually studying the 1065 returns to be able to prepare them next year. So in other words, this is a hypothetical scenario. This year I mostly did individual taxes and schedule Cs. So I am looking to see where in proseries can the partnership (and yes they partnership owned the vehicle) can we enter the standard mileage. IF the partnership did not own the vehicle and its was personal and they were not reiumbursed, I understand you would put that as UPE on line 28 Schedule E (has to be in the agreement).

[IRonMaN]

If the partnership owns the vehicle, you need to take depreciation and actual expenses.  If it doesn't own the vehicle then you would be going down the UPE route.

[mvp2885]

ah ok, so no standard mileage can be used if its part of the partnership. Understood. Thank you very much.

[IRonMaN]

You betcha!

[mvp2885]

IRonMan: If the partnership owns the vehicle and it has an employee using the vehicle and the partnership reimburses that employee for the mileage, the partnership can use the standard mileage rate for reimbursement and deduct those payments as "actual" expenses?  Is there any IRS pub on this? Thanks!

[mvp2885]

IRonMan: If the partnership owns the vehicle and it has an employee using the vehicle and the partnership reimburses that employee for the mileage, the partnership can use the standard mileage rate for reimbursement and deduct those payments as "actual" expenses?  Is there any IRS pub on this? Thanks!

[sjrcpa]

"If the partnership owns the vehicle and it has an employee using the vehicle " then why is the partnership reimbursing the employee for the mileage?

[mvp2885]

In the case where an employee puts gas on the car, let says a landscaping company, employee drives the truck around and puts gas out of his own pocket. How would this work?

[IRonMaN]

The employee gets reimbursed for actual out of pocket expenses.

[mvp2885]

Got it, Thanks.

[IRonMaN]

:+1: