Standard Mileage rate

[LindaB]

Claimed as a dependent on her parents return, finished college in spring of 2009, working as an independent contractor--Sch. C income. If she used a car that belongs to her parents, can she use the standard mileage rate? (I don't think she can) Can she use actual expenses?

[imjulier]

Interesting. Any chance the parents have gifted her the car even though its not in her name? I understand that no std mielage rate allowed since she doesn't own it but if its a gift....maybe. If not a gift, I would do actuals with business % applied(without depreciation....if she indeed paid the expenses and the parents didn't. If the parents paid everything...no go. I don't have any cites on this....just logically thinking about how I might handle the same situation. When I worked for a big corporation, I was never asked if I owned the car before I was reimbursed for business miles...when I was younger, my parents owned the car but I was reimbursed any way.

Julie