What happens when an employee deducts as much as he earns?
 

How does that work? I was going to carry newspaper bundles (not deliver them to residences, but to the distribution centers) and I'm curious to know if the .48/mi deduction would apply for that. I'd be driving 204 miles per day. They would only be paying me $700/wk though. So if I'm paid $36k/yr and have nearly $36k in deductions, what happens then?

Good lord you are retarded.

Thank you for you input. . :321GFY

Did they deny your Mensa application again? :(

Sure, funny guy,
In fact... I missed mensa by eight points when dupont tested me at age eleven or twelve, and, there are no exceptions.

come on man, Google will tell you this faster then on here.
I remember having to claim 150K and wrote off about the same amount. You still have to pay SS no matter what. Just google it because I pay someone to do all this crap for me

an audit.

probably :1orglaugh

Google cannot hold a candle to the brilliance of gfy
Never

are you an employee or a contractor?

Generally you can write off losses for a few years as they can accept a start up losing in the beginning, after a few years they say you have a hobby not a job, get a job and don't write shit off anymore loser. :thumbsup

It would be a contract position.. that matters, right? Like if I was an actual employee I would get fucked out of the deduction- yes? I have always wondered about that. If the stealermint is going to call labor exchange "income", then, why can't normal people deduct their mileage...

Shut it up one shit at a time, would you, you are being very rude.

im in canada now, so i cant speak to usa labour law, but if the contract requires the use of a vehicle, you should be able to deduct expenses, including gas, maintenance, insurance etc...now if you also use the vehicle for personal use, you would have to pro-rate those expenses, so you would have to determine the % used for the contact and claim deductions on that..

After a few years of that it becomes a hobby and no longer deducible. But that is easily done with a new business and not uncommon.

just wow.

Honestly you'll probably get audited because of the ratio of deductions to income..

But when I was driving a lot for work trips between three different state offices, I was doing about 1600 miles a month.. all the time every month.. back then the deduction was $0.35 per mile.. so I was racking up $560 per month in deductions easy, plus lodging and meal expense deductions..

I'd still have to pay out my ass with quarterly estimated payments and then with what I'd owe at the end of the year.. but the deductions basically helped offset the cost of the car I was purchasing.. I also got to write off the interest on the car..

My accountant would not allow anything that was not above board.. so I had trip sheets for every trip, detailing milage, I'd also keep gas purchase reciepts to document the milage/fuel usage..

You can only do standardized mileage deduction OR the cost of repairs and gas to the vehicle.. not both.. usually the standardized mileage deduction is the best option..

WTF? That was the right answer.

Yea I learned the hard way Don't use a company car for personal use :(
4000 klm's a month back and forth to work sure fucked me at tax time ...

"Dear I.R.S.,
Sorry I fucked my taxes up, but I was asking for advice on GoFuckYourself.com and I guess I got such a variety of advice, I messed my taxes up.
Sorry I just didn't go to H&R Block..."

Think he thinks I was talking shit instead of me using it as an example of what they would tell him if he reported losses for more than 2-3 years in a row. Thanks though :thumbsup

I'll be sure to stay outta his next thread which will probably be something like...

My probation appointment falls on a holiday, should I go the day before or the day after the holiday :1orglaugh

Lol lol .....

"get a job and don't write shit off anymore loser." is what you said
So I told you to be quiet

Deliveries
 

You can use the mileage deduction or the actual costs. Usually people use the mileage as it's easier to track. You can use either, but not both. Your checks from the newspaper are proof you made the deliveries. Just keep the check stubs or at year's end ask for a printout of deliveries. Your 1099 is proof it's not a hobby. The IRS knows the difference between delivery driver and someone who deducts travel to resorts to post on their travel blog.
However, you'll come to realize as most people who do small deliveries, using their car, the payment you receive only covers your gas and a token amount for your time. In no way does it include the wear and tear on you vehicle. That's why this type of job or messenger jobs are always listed in the employment sections. It doesn't take long to figure out it's a money losing business.
You're going to put close to 75,000 miles a year on your car if you deliver every day. That will wear out even a new car in 2-3 years. Do the math. What you're earning doesn't even cover replacement cost.

The likelihood of you getting audited if you keep good records and are meticulous is very low at that gross income. There is nothing wrong with taking a loss, however, you cannot deduct insurance premiums if you do.

When your simple mileage deductions are close to your total earnings you have zero chance of making money. This is even more true if you are hauling heavy loads.

He was impersonating what the IRS would say. You are just so used to people calling you a loser, that you automatically thought HE was calling you a loser.

Something you may want to take under consideration.

If you're going to load uo your honda with newspapers don't expect it to last more than the first month. Paper in bulk is very heavy.

Excuse me for not reading GFY closely enough .. haha
The fool was still being rude

Ah, yes, but I'll take the seats out of there :1orglaugh

that commute is hell ...

Brilliant! :1orglaugh:1orglaugh:1orglaugh