bicycles and the IRS: for sole proprietors and for commuters

Just occurred to me, if I visit clients by bicycle, shouldn't I be able to take a tax write off for my "company vehicle"?

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Permalink Reply by jlj on February 3, 2011 at 9:28am
Someone I know has done this in the past.
Permalink Reply by Michael A on February 3, 2011 at 10:41am
I am going to start saving all my Gannon's receipts as fuel costs
Permalink Reply by Michele on February 3, 2011 at 11:31am
Thanks, Serge, this is interesting. Does anyone on Chainlink work for an employer who offers this benefit? I'm self-employed so I don't think I can use it.
Permalink Reply by T.C. O'Rourke on February 3, 2011 at 3:04pm

If you use your bicycle for work related transport, you can write off the expense, or portion relating to the specific travel.  The cost of the bike, parts, repairs, etc.

 

The courts have consistantly denied, however the deduction of food expenses as fuel: http://www.bikesatwork.com/cycling-for-profit/food-as-fuel.html

 

So be sure to deduct those Gannon's receipts as "business entertainment".

 

 

Permalink Reply by Julie Aberman (Hochstadter) on February 3, 2011 at 5:48pm
I have done it for 3 years now.  First year my accountant was hestitant, but I told him if I get audited the gov would have to accept it (hopefully they would at least).  Now that the new bike employee discounts were rolled out my accountant is even more ok with it.
Permalink Reply by Michele on February 3, 2011 at 6:07pm
Hi Julie, can you explain a little bit more about what you've done the last three years?
Permalink Reply by Davo on February 3, 2011 at 6:47pm
Do you have a link for this "bicycle benifit" thing. I tried passing the information about what you were talking about earlier to my employer but they never got back to me. We're a smallish company and probably dont have the numbers needed to make that benificial for them.

Serge Lubomudrov said:

I haven't tried it (never even asked my employer), because I use the "transportation benefit" thing, that is, pre-tax withdrawals in the approximate amount of my monthly spendings on riding with CTA; you can't use both this and "bicycle benefit" at the same time. It would be interesting, though, to calculate which one is more "beneficial."

I'm not a CPA . . . do you have one to ask?


Michele Beaulieux said:

Thanks, Serge, this is interesting. Does anyone on Chainlink work for an employer who offers this benefit? I'm self-employed so I don't think I can use it.
Permalink Reply by Julie Aberman (Hochstadter) on February 23, 2011 at 4:11am
My accountant does it. I give him all my bike expenses. I don't think you can write off gear but I believe he can write off mechanic work and purchases.

Michele Beaulieux said:
Hi Julie, can you explain a little bit more about what you've done the last three years?
Permalink Reply by Doug Haynes on February 23, 2011 at 2:24pm

Really when it comes down to it if you are an independent contractor or sole proprietorship you can writer off just about anything that is a direct work expense, or one that you can justify as a work expense.

 

I write of my Metra pass, parking permits, bike costs and anything else I can think of that relates in ANY way shape and form to work.

 

Why do you think I try to talk so *somebody* about what I do for a living everytime I go to the bar...

Permalink Reply by in it to win it 8.0 mi on February 24, 2011 at 4:22am
So I bought my new commuting bike in March 2010; probably 80+ percent is for work and back.  My accountant can use the receipts for deduction?
Permalink Reply by Doug Haynes on February 24, 2011 at 2:35pm

It depends on your tax status; if you are a business or independent contractor probably but if you are employed by someone else no.  However if you commute by bike (or use alternative fuels such as propane, CNG, veggie oil, etc...) you can get a tax credit.
in it to win it said:

So I bought my new commuting bike in March 2010; probably 80+ percent is for work and back.  My accountant can use the receipts for deduction?
Permalink Reply by Duppie on February 24, 2011 at 3:06pm

Why don't you ask your accountant? He should know what applies and doesn't apply to your situation better than anyone on this forum.

 

Having prepared taxes for hundreds of families over the last dozen years or so, I do know that the devil is sometimes in the details.


in it to win it said:

So I bought my new commuting bike in March 2010; probably 80+ percent is for work and back.  My accountant can use the receipts for deduction?

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