MY wife is paid 50 cents per business mile for use of her car. Can we claim any tax deduction for milage?
Yes, you can claim a deduction, but you will need to calculate the actual cost of the mileage, and then subtract the $.50/mile you’ve already received. The remainder goes on Form 2106, which flows through as a Miscellaneous (Subject to 2% floor) deduction on Schedule A. Technically, there may be a deduction here. As a practical matter, I bet it turns out to have no impact or minimal impact on your return. You’ll have a hard time establishing cost per mile beyond the $.50 unless you’re in a special circumstance (very expensive repairs to vehicle, very bad gas mileage) AND you have kept good records re the cost of maintaining/operating the vehicle. Autos are also subject to limits on depreciation – it doesn’t matter if you’re driving a $100,000 car, the IRS will only let you depreciate the value of what they consider a reasonable car. The remaining cost is considered a luxury you choose to buy for personal reasons, and is not deductible.
