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Old 12-11-2018, 10:48 PM
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Join Date: Dec 2018
Location: Pittsburgh, PA
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1099, mileage deduction, mileage logs

Hello I have a few questions about Deductions, I perform 1099 work and I went out in the beginning of 2016 looking for a tax place to do my taxes for the end of the year. Trying to find out correct way to do deductions.

I clean restaurants and I have to pay for all my own fuel, supplies, and equipment. I work 7 days per week, every week, every month except for Thanksgiving and Christmas. The 1099 work I leave my house at around 10 pm and I do not return back to my house until 9 - to 10 am the next day. When I leave my house I go to a total of 5 different restaurants on a route and everyday (7 days a week it is always the same route). I average per day around 200 to 240 miles per day.

The tax guy I hired, I have used for 2016 and 2017 taxes. In 2016 when I first met him at his office I asked about the right way to do mileage deductions. I explained what I do, and I said I have 2 vehicles a personal vehicle and I have another vehicle that I will be doing the work in I would be putting a lot of miles on the vehicle and it would solely used for 1099 work 100% of the time.

He told me that a daily or a weekly mileage log of the miles either per day or per week since it was the same route everyday. He also said I could deduct mileage or I could deduct the auto expenses (wear and tear, oil changes, maintenance) but I could not deduct both.

I showed him a document I created a mileage log weekly starting from Sunday and ending on Saturday and on Sunday putting the mileage beginning miles in and then on Saturday putting the finished miles in for each week and then I have a separate sheet for each month totaling the mileage of the 4 weeks. At the beginning of the year I showed him my forms and how I was going to do it and he said it would be acceptable because it was a route and if any other business driving was done other than this then it would have to be individually recorded.

In 2017 While he was doing my taxes he said he did not understand why I did not have any records/receipts for maintenance, wear and tear, oil changes etc to give to him and I said you told me back in 2016 that I could not deduct both either I could deduct mileage or maintenance. He told me that he could not remember saying that and in fact I could write off both. (which I never claimed anything) I basically did 12 oil changes per year, one per month as well as new tires yearly and a lot of other maintenance. Averaging about 48-55,000 miles per year.

Last month I received a letter from the IRS stating a letter audit for car and truck expense and sch. c other expenses and I went to his office and he said well I knew this might happen in 2016 because you are using a lot of mileage each year more than a normal person uses but you have records to support the mileage so you should be fine, however you are supposed to record each entry, each day but I took your mileage logs and submitted them anyway. So he took my mileage logs both years and never said anything to me. He said oh wait you have 2 vehicles I could have deducted the cost of one of them and also got it depreciated for you but you never told me you had 2 vehicles.

I got really upset because I did tell him, I explained everything accurately to him each year as well as him telling me the mileage logs were fine and also that I could not deduct auto maintenance and then the following year telling me I could. I gave him the logs, the receipts and he never said anything...

Here are the questions;


Because of my driving/mileage situation do I have to change the logs or send them the way they are? He said if I turn the logs in the way they are they will not be acceptable. He said to break it down for each day and then turn it in.


2nd question Can you write off both mileage and auto maintenance? He said at the beginning in 2016 no and then currently he says yes?


3rd question He told me the benefit of hiring a CPA over a non CPA tax firm was in the event of an audit the CPA firm would handle it for me not saying up front additional costs of 2,000.00. In that case I could have went to any tax person and if I got audited (which I did) I would still have to pay someone. So his statement of him being better than the other guy does not make sense unless I am missing something?


I am currently trying to do the audit myself as making copies of all the receipts and everything they want. They said 1st is a mail audit, 2nd is phone audit and 3rd is home audit. Since they are auditing me for 2016 will they most likely audit for 2017? The same mileage and same thing as far as the mileage a lot of miles and same type of mileage logs.

Last question about mileage so this year I want to go out and try to get my own work not 1099. So if for an example I go out for 8 hours driving up one side of the highway and back down the other talking with 150 businesses dropping off brochures can I put the start mileage for that day and the purpose talking with new potential clients and then at the end of the day write in the finish miles? Or will I have to stop at each business and write in the start/end miles and the purpose 150 times for that one day?



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