Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Well, I've been interviewing for a new job. It looks like a really sweet deal. It will require a lot of driving, using my own vehicle. The fly in the ointment is that I'll be an employee rather than a contractor (Schedule C I understand). The company would reimburse 34 1/2¢ per mile. Is this going to be considered income? Will I have to keep track of my expenses and pay taxes on the difference? There is no way in heck it costs 34 1/2¢ to run my car barring a catastrophe not covered by insurance. Since it's a reimbursement, and uses the IRS approved number do I get to pocket the difference tax free?

Oh, just to make it a little more complicated I used my current vehicle in contract work through 1997 and deducted the then going mileage rate on Schedule C. That includes depreciation, no? If so my vehicle may be very nearly fully depreciated if I recall the numbers correctly.

Should I give up the idea of this sweet job because this will cast me into an inner circle of income tax hell?

Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.