Question

Small Business Deducting Fuel Expense on Contractors Vehicle

Forum|Forum|6 years ago
August 20, 2019
1 reply
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Scenario: Company uses independent contractor to provide roadside assistance for Uhaul business. The company pays for the fuel of the contractor's private vehicle and mileage records are kept. The contractor gets a 1099. The cost of the fuel is not included on the 1099. Can the company claim the fuel that was provided as an expense on Schedule C?

Critter

Employee

The way you have that reimbursement is unconventional since all payments to the contractor would be included on the 1099 and the contractor would claim the fuel or mileage costs ... however since you have an accountable plan it is a deduction for the Sch C since you are the one who actually paid the expense ... do not enter this in the vehicle expenses section ... enter it as a write in category at the end and call it FUEL.