does anyone know?
Car lease in residency - is it tax deductible?
- Thread starter jesseruva
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As a general rule, the cost of a vehicle is not tax deductible; nor do you get to deduct expenses for driving to work-- unless you start your day at job site A and drive to job site B in which case you can deduct the pittance of costs incurred in driving from A to B and back home.
The recordkeeping burden alone would thwart any benefit you think you will derive.
The recordkeeping burden alone would thwart any benefit you think you will derive.
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Agree with above. Every year my accountant asks me for my mileage and every year I remind her that I rarely drive from my place of business (ie one of my offices) TO the hospital so that isn't worth the hassle of keeping track (which she noted the first year I was in practice).
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I'm also not really clear on whether, at least as a resident, driving between two different hospitals where you had clinical duties would be deductible anyway, since they're both technically your place of business.
But again...even if it is deductible, the rate is $0.555/mile. So if you drive 100 miles a week between hospitals (extreme but possible if you're somewhere like UW-Seattle or UC-Denver where you have multiple hospitals to cover spread out all over town), you can only deduct $55 from your taxes/week...and that's not a tax credit, just a deduction so in the end is probably worth about $15. It would be way easier to just skip your latte every day and you'd save more money than that.
according to the IRS
Two places of work. If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. However, if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second.
http://www.irs.gov/publications/p463/ch04.html
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You really need to talk to a CPA...not a bunch of med students and doctors.
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Good to know (too lazy to look it up myself since I don't actually care). But the point that you'd have to do a crap-load of driving (like 250+ miles a week IMHO) to make the record keeping worth the hassle.
My point exactly...along with a lot of other things deductible
But remember, the costs to attend the medical convention in Hawaii in January might be deductible, but not the deep sea fishing excursions.....
