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#1947701 - 07/31/14 02:10 PM Mileage Reimbursement Income
HR Banker Offline
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Joined: Oct 2002
Posts: 1,027
Can anyone verify how this is calculated in ATR? From what we read it seems that if the customer gets $.56 per mile reimbursement for business travel then you can count $.22 cents per mile as income. Anyone agree or have another option?

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#1948326 - 08/01/14 05:46 PM Re: Mileage Reimbursement Income HR Banker
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,286
Galveston, TX
How does mileage reimbursement at the IRS rate equate to income? It's a wash.
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#1955876 - 08/21/14 08:16 PM Re: Mileage Reimbursement Income HR Banker
mtgbnkr Offline
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Joined: Jun 2014
Posts: 7
The IRS considers .23 cents of the mileage used for business as depreciation. If the borrower only takes the expense in the form of mileage you can use this method to determine depreciation for non cash expense as an add back item.

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#1955959 - 08/22/14 02:19 AM Re: Mileage Reimbursement Income HR Banker
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,286
Galveston, TX
Can you explain? The rest of the mileage reimbursement is for fuel, maintenance, etc. How do you figure this as a add back unless you can determine the method under which this is all accounted?

I charge $.56 a mile and I deduct $.56 cents a mile on my taxes - where is the add back?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1956806 - 08/25/14 09:02 PM Re: Mileage Reimbursement Income HR Banker
mtgbnkr Offline
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Joined: Jun 2014
Posts: 7
If a person were to itemize the deductions and on Sched. C take depreciation as a deduction and didn't have mileage at all you could add back the depreciation figure as income just like on MGIC's SAM form for self-employment for example. If line 28 (depreciation) is blank you are allowed to consider .23 (for 2013) of the .56 of business mileage depreciation and use that instead of what you would normally get from line 28. This is also found http://www.irs.gov/pub/irs-drop/n-12-72.pdf which shows you the amount which is consider depreciation. Make sense?

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#2162297 - 01/29/18 09:16 PM Re: Mileage Reimbursement Income HR Banker
Caroline Compliance Offline
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Joined: May 2015
Posts: 127
My follow-up question... I would think this would also apply to situations when the borrower has an ownership interest in a business, like a partnership or LLC, etc. Not only to Schedule C, sole prop. I'm with you MTGBNKR. I know exactly what you're taking about.

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