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Posted: 1/23/2014 10:22:49 PM EDT
My wife is an RN that has her "usual" weekend double shift job on the weekends she goes to. On the side,she does home healthcare for a company and does visits throughout the week. The company takes out taxes on her check but that's it. she is considered "contract labor" and uses her own vehicle to see patients and she does not get reimbursed for gas or mileage. This spring she purchased a new 2013 Escape for a few reasons. 1 her old car was having issues 2. needed something bigger for the kid, 3. she puts on A LOT of miles for this job so wanted something with no miles and good warranty.

We have been writing off the mileage for the past few years on this job but how much of this vehicle purchase are we able to write off for her work?

to give you an idea, she puts on around 200-300 miles a week for this job alone and that's in about 3 days of work. everything else she uses the car for is all in town which is about 9 miles away. since we purchased this car, we calculated that 20K miles have been put on for her side job this year alone.

any help would be great.
Link Posted: 1/24/2014 11:37:07 AM EDT
[#1]
I talked to a couple of friends who are small businessmen about this over the last couple of weeks.  We discussed whether it was better to buy a car for work through the company or to buy it personally and charge off mileage.  Without bothering you with the details, it looks like an easier, and probably more lucrative, option to buy it & charge off the mileage.  It's $.56/mile this year, down from $.565 last year.

The main reasons are that it's a PITA to keep track of the personal mileage and maintenance  & reimburse the company for it & you can pay yourself the mileage & use it as a sinking fund to finance your car or the monthly car payments.

Good luck.
Link Posted: 1/24/2014 2:10:52 PM EDT
[#2]
thats what we were thinking as well, but i remember talking to a few guys about their equipment and cars they buy that they use for work, and they write off a percentage of whatever they purchase. seeing that we did buy this thing with her work in mind, i was curious as to what else other than mileage we can write off
Link Posted: 1/27/2014 7:20:08 AM EDT
[#3]
as previously pointed out, you are best off just tracking mileage and taking the deduction for miles driven for work.
A mixed use vehicle (personal and business) gets too complex to make it worth the effort.  The depreciation and cost sharing for each event would be a nightmare to calculate.

The federal mileage rate takes in to consideration wear and tear, fuel, oil changes, tires, insurance and general maintenance.
Taking that in to consideration, you know that you will have insurance regardless.  You know your general maintenance on this newer vehicle will be much lower than the average vehicle on the road.  This means your are "coming out ahead" in those real costs per mile, but of course it costs you more for the depreciation of the vehicle.  This is the trade off.  There is always trade offs.
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