Turo and Standard Mileage Rate

[Patrick Michael]

Client bought a car that is used exclusively for Turo rental.  Using the standard mileage rate, they are looking at about $12,000 for auto expenses.  Their actual expenses amount to less than $4,000.  My research shows that there is no reason they can't use the standard rate, even though they didn't spend anywhere near the standard rate deduction.  Only one car, so the fleet exception does not apply.

Is there something I'm missing or have not thought of?

[DANRVAN]

49 minutes ago, jklcpa said:

customers pay for the fuel.

 

2 hours ago, Patrick Michael said:

, even though they didn't spend anywhere near the standard rate deduction. 

Your client is not paying all the actual cost that are factored in the the standard mileage rate.  In that case the standard rate does not accurately reflect his cost.

[Lee B]

You need to add depreciation to the actual expenses before you analyze the situation.

[Abby Normal]

Ask them if they got commercial insurance on that vehicle. If you use a car for business but insure it as personal, the insurance company can deny any claims.

Also, I agree that you can't use standard mileage because the business is not buying the 100% of the fuel.