Home Improvement Contractor - Licensed Contractors

Independent contractor with a car not in my name?

If my car is not in my name but I use it for work as an independent contractor, do I claim standard mileage or depreciation? I pay for the car and make insurance payments but the car is in my mom's name. I meant, standard mileage or actual expenses? And do I claim depreciation?

Public Comments

1. You can claim actual expenses paid, or standard mileage. You cannot claim depreciation since you don't own the vehicle.
2. Topic 510 - Business Use of Car To use the standard mileage rate, you must own or lease the car; If your mother chooses to lease her personal vehicle to you, then she needs to claim the income as personal property rental on her income taxes. She can only deduct depreciation and interest on the vehicle to offset the income. Then you can deduct mileage for you business use. But be sure that it is based on personal vs business. And she would need to contact her insurance company that the vehicle is being used for business purposes too.