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Farm tax question - pickup truck
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jakescia
Posted 3/14/2019 11:17 (#7379955 - in reply to #7378999)
Subject: RE: Farm tax question - pickup truck



Oskaloosa, Iowa 52577

Strictly speaking...…...technically speaking...…….it appears that such would be allowable.

Practically speaking...…..I would not do it.

Too much hazard, and if questioned, there is no time to re-establish the method.

With Onstar, etc etc one can probably validate the mileage readings, so that is not as much of a problem as it used to be.

However, if the total miles for the year seem to the IRS as being a bit "high", I see no capacity for recovery.

and, since the real value of the mileage method typically kicks in with high mileage drivers, as compared to the mileage incurred by a vehicle "....used in farming", my concern would be that a taxpayer could be setting himself up for a tax problem during audit that could be easily circumvented.

With the actual method, everything is "clean"------ all expenses go thru the books, are documented (or should be) with cash payments, etc. etc.  There is nothing that is on a "trust me" basis.

With the mileage method, there is the trust factor that all miles are business, or at least de minimus personal. 

I hate to be a chicken...…….but it is called "don't poke the bear".

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