@johnb974 wrote:
One of the gas station mystery shop's pays a $10.00 fee. They do require you to make a gas purchase, but there is no reimbursement for the gas purchase. Can the gas purchase be used as a business deduction, since you are required to purchase the gas for the assignment? Can I fill up my tank and write it off?
@mbrasseau wrote:
If you deduct the .55/mile for mileage, your gas is already factored in. If you deduct a gas expense on top of this you are double-dipping.
@ceasesmith wrote:
@mbrasseau wrote:
If you deduct the .55/mile for mileage, your gas is already factored in. If you deduct a gas expense on top of this you are double-dipping.
Welcome to the forum.
You are, unfortunately, incorrect in this assessment.
If you are REQUIRED to purchase gas to complete your assignment, and you are NOT reimbursed for it, then it is, indeed, a deductible expense (in addition to your business mileage deduction which does, indeed, factor in the cost of running a vehicle).
It's just like this: I have to eat. Mostly, I prefer to eat every day. My $5 required inside the store purchase was food. Deductible or not?
Yeppers. Deductible. Even though I would have bought it on my own dime, because, as I said, I do like to eat every day.
Nevertheless, let me repeat the mantra: Do not accept tax advice on a public forum.
@mystery2me wrote:
These are all just opinions. There is nothing authoritative on the matter from the IRS or the tax courts. It's a gray area. I don't count my gas reimbursements as income for the simple reason I would rather err in my favor than the other way around. Better to pay the back taxes if I'm wrong than to lose out on a potentially valid deduction. Same would go for unreimbursed required gas purchases, but common sense tells me not to write off a whole tank of gas.
@johnb974 wrote:
So if the guidelines say $3 minimum gas purchase, but it's NOT a reimbursement, and I buy $30 worth of gas, can I write off the $30?
@mbrasseau wrote:
Its not an opinion. I'm a registered tax preparer. I've had several clients, both self-employed and not, where were who get various expenses reimbursed. And the IRS has lots to say about reimbursed expenses. It is NOT a gray area.
Yes, the amount paid to you is considered revenue. And the amount you pay is the expense. And it is on that part of the Schedule C when you are 1099'd. If you are paid W2, it is input on a specific part of the 1040.
But gas is different in that you are already getting the expense deducted when you take the .55 standard deduction. You cannot take the deduction there AND as a business expense. It is double dipping.
And the reimbursement must be included in your total monies received.
@isaiah58 wrote:
Can you perform a grocery store shop that pays a flat reimbursement of $10, fill up your cart and write $300 worth of food off?
@pieslapper wrote:
The sad part is you could call the IRS, speak to 3 different agents and get 3 different opinions.