IRS rate is 55.5 cents. You are getting screwed....It hasn't been lower thatn $0.50 for several years!

And considering wear and tear plus depreciation, you are not coming out as good as one might think.

 

You can file the difference on your tax's but I believe you have to file a long form to do so....

Edit: I meant the mileage difference by the way....

 

But your bis. can only stay in the red for X amount of years before you have to start showing a profit. That X amount I believe is 2 I wouldn't hold my breath on it though

 

NOt necessarily true. you have to show that you are "attempting": to make a profit. This is to eliminate hobbies from being tax deductible. I raised cattle for years, without showing profit (huge depreciation expenses) and a firearms dealership for 8 years with no profit (inventory is not considered profit).

 

I've occasionally seen some police officers "lease" their own squad cars to the departments they work for. The officer will buy a car suitable for patrol, and have a written agreement drawn up by the town attorney. Usually the stipulation is the car is actually registered to the town, insured by the town and then you get into the details of fuel and maintenance costs. One guy I work with leases his 2006 Impala to the town for nothing more than two tanks of fuel per month and half on major mechanical repairs plus keeping it insured and registered. Another guy I knew leased his Caprice to the town for fuel as needed and all mechanical. I don't know of any that leased for an actual monthly payment (as in, you pay me $500 a month for the use of my car, and you pay fuel, insurance, and keep it registered with police plates). Most just wanted their own take-home car so they bought second-hand squads and got the town to register them.