Ed Zollars, CPA wrote:
- quote -

Let's say then, that he does drive exactly 1,000 miles each
month, of which 500 are commuting to regular job, 300 are
other personal mileage and the remaining 200 are just to
fulfill his obligation. 300 are deductible at 37.5, no
problem.

But could the remaining 800 miles be pro rated maybe? 1/2
of 37.5 per mile?

(Just thinking out loud. I'll quit now.)

ChEAr$,
Harlan Lunsford, EA n LA

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wrote:
- quote -

That would be my guess also.

Now, if on the 25th of the month, he estimate that he'll
only be driving 950 miles that month, the extra 50 miles he
drives in order to meet the contract should be deductible.

Seth

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Trey wrote:

- quote -

Probably no unless you can show the *principal* reason for
driving every one of those 1,000 miles was to earn the fee.
If those miles are ones you would have incurred anyway, then
it will be a nondeductible personal expense you have
incurred.

--
Ed Zollars, CPA
Phoenix, Arizona

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tkd7394[at]aol.com (Trey) wrote:

- quote -

You can treat it as a second business. But doing so doesn't
convert your automobile expenses from nondeductible personal
and commuting expenses to business expenses.

I believe the IRS has spoken pretty clearly on this in the
past: the cost of the advertising is a business expense; the
cost of owning and driving the car is still personal.

--
Chris Green

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- quote -

Commuting is commuting is commuting and not deductible.

Helen, EA in PA
50 miles, 3 days, 1 cause - Multiple Sclerosis Challenge Walk for the Cure
October 1 to October 3, 2004
Donate on-line at www.msandyou.org

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I want to earn money by using an auto adwrap agengy. I get paid for
having advertisment posted on my car. At a payment of $400 per month,
can I deduct the 1000 miles I am required to drive? What if the 1000
miles per month are included in my daily commute to my normal job? I
will be required to pay taxes on the money earned so why could'nt I
treat it as a second business?

Thank you for any advice!

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