Legal Question in Tax Law in California

Tax deductions for vehicle expenses

I'm planning to start working as an independent contractor this year, so I've been reading up on expenses that I should be tracking for tax deductions. A big one for me is going to be auto expenses, since I'll be driving to clients' workplaces a lot.

But the car that I'll be driving doesn't actually belong to me. (A friend has loaned it to me while he attends grad school in another state.) Can I still get a deduction for its usage even if I'm not the actual owner?

Thanks.


Asked on 11/03/03, 7:29 pm

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Tax deductions for vehicle expenses

You can deduct any expenses that you incur, such as gas, oil, tires (if you replace them), insurance, etc. If you are paying anything for the use of the car to your frien, then you could deduct that, too.

You cannot take depreciation expenses, and probably not the per mile deduction.

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Answered on 11/04/03, 11:43 am


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