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Turo rental clients fill the vehicles w/ fuel. Can taxpayer still claim the std mileage deduction if he doesn't pay for fuel?

tearlcpa
Level 1
 
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9 Comments 9
Just-Lisa-Now-
Level 15
Level 15

"Re: Turo rental clients fill the vehicles w/ fuel. Can taxpayer still claim the std mileage deduction if he doesn't pay for fuel?"

You may need to clarify what a turo rental is....fill vehicles with fuel...how does this relate to the rental?


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BobKamman
Level 15

Turo is to vehicles what airbnb is to lodging.  I'm not sure standard mileage rate is allowed for short-term rentals -- or are we talking about the owner of the car, who's not paying for gas after the first tank?

Just-Lisa-Now-
Level 15
Level 15

I wasnt familiar with this, thanks Bob!


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qbteachmt
Level 15

Mileage Deduction is an allowance amount for operating a vehicle you own/lease. Rental car expenses for business trips would be Actual Expenses, since you are not incurring the operating costs for the vehicle for that tax year. If you fly on business, you have Actual Expenses; you don't use the Mileage rates for airplane ownership rules.

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BobKamman
Level 15

Who incurs the operating expenses on a leased car is irrelevant.  If I lease a car for three years and turn it back in at 36,000 miles, the leasing company pays for the major maintenance that is due at 40,000.  The question is, when IRS started allowing the standard mileage rate for leased cars, did they define "lease" or require a specific term?  Two years? One year? Six months?  Six weeks?  Please try to answer without going off on a tangent about airplanes.  

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qbteachmt
Level 15

We don't even know whose car this is. If Turo is like AirBnB, then as usual, perspective would be helpful. We don't know if this is asked to prepare taxes for the party having the Revenue income, or renting the car for self-driving use and incurring it as expense. As usual, we are being expected to mind-read.

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qbteachmt
Level 15

@tearlcpa 

I see you asked Again, here:

https://proconnect.intuit.com/community/proseries-discussions/discussion/standard-mileage-deduction-...

There was no need to keep asking. I am noting this is No Longer the current topic, so that your peers users that volunteer to help you, will not spend their time on Both Topics. Thanks.

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Steve7229
Level 1

It seems this was never fully addressed and the original topic fits my situation to a t. 3 vehicles on the platform for business use- self employed 20k income. 
so here’s what I can clarify: 

Typically there is a commission or acquisition fee paid to Turo for the acquisition of the client. The self employed individual with the 1099 or self employment income does not see this money, and in my case it is approx. 40%. Then you have the expense of the vehicles you rent out to other individuals. We maintain, wash, sanitize and otherwise completely care for the vehicles. Everything EXCEPT fuel replacement, which is handled by the end renter under the rental agreement. Typically the end renter replaces the fuel however there are times where they bring back cars with less fuel and we incur fuel replacement costs. Otherwise the owner (self employed individual) incurs all of the vehicles cost. Insurance, registration, loan interest *if any*, repairs, maintenance -oil-tires-washes-brakes- you name it). Most of us that do this and take it seriously have dedicated cars for this purpose. In my case I own 5 vehicles, 2 “personal” cars and 3 dedicates 100% for Turo rentals. In my case 1 of my 3 had maintenance costs exceeding standard mileage deduction- so I claimed actual expenses. The other two it was slightly more of a deduction to claim standard mileage vs. actual expenses expenses. That brings us to the question... if you yourself are not “operating” these vehicles can you claim standard mileage? I have yet to get a clear answer from anyone. Some CPA’s say yes and some say no. Since we are not fueling the cars, and that’s a consideration for the standard mileage deduction (this year 57.5 cents per business mile). Here’s my thoughts previously posted in reply to this question on another post thread: 

Any car share (Turo or any rental service) self-employed person should be able to do standard mileage  deduction and back off fuel costs easily WITHOUT receipts. For example if you have a vehicle that has 10k business miles and you’re claiming standard mileage deduction of 57.5 cents thats a deduction of 5750. Couldn’t you simply take the fuel range of the car (ex 400 miles) divide the total mileage by the cars range and divide that to determine how many tanks of fuel, in this case 25 and then multiple that by the fuel capacity of the tank (ex 23 gallons), finally multiply by the average cost of fuel (ex 2.50) which gives us $1437 and then deduct that from the total “standard mileage deduction” so $5750-$1437= a total deduction of $4313. I’m not an accountant or a cpa but is there any reason this is NOT an acceptable way to go about this? 

 

 

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qbteachmt
Level 15

@Steve7229 

You asked in Two Places. I answered on the other one.

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/re-standard-mileage-ded...

You seem to be doing your own taxes? This is a community using the ProSeries program to do their Clients' taxes. Is that you?

Or, perhaps you need the link to the TurboTax Community?

You seem to be lost on the internet.

You’ve come to a Peer User community for Intuit Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte , and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Thanks.

 

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