Auto expenses

[Clyde Hollinger]

John,

I use a 1995 Oldsmobile sedan for both work and personal.  When figuring business expenses for tax purposes I use the figure allowed by the US government, which is currently around 32 cents (US) per
mile.  I think this figure is to cover the depreciation, maintenance, fuel, insurance, the whole shebang.  On my tax return for the year 1998 that was about 6.5% of my total gross receipts.

Of course the driver should be paid enough extra for his time so he can make a reasonable profit from his service.  I don't have enough information or expertise to know if your driver is being
"shortchanged" or not.

Regards,
Clyde Hollinger

"John Lillico, RPT" wrote:

> Here's one for car owners whose primary income is derived from in-home service. What percentage of your gross income is allocated to all aspects of transporatation? (purchase, upkeep, fuel, etc.)
>
> Because of a visual impairment, I hire a driver with car to get me to my appointments. He gets a flat 15% of my gross.
>
> Is this in line with your auto expenses? Is my driver with a 1995 Toyota Excel (no air) being short-changed?
>
> With gas approaching 65¢ per litre, I'm being pressed to offer a little more.
>
> There may be other non-driving technicians on the list who would benefit from your imput.