Standard Mileage For Taxi Cab Owners

For the 2011 tax year, taxi cab owners (non fleet owners) may now use the standard mileage deduction on schedule C. The IRS in Rev. Proc. 2010-51 and Notice 2010-88 revised the definition of cars for hire, and included them in the vehicle types that would qualify as eligible for the standard mileage deduction. Please note that listed property, under IRC Section 274, and Reg. Section. 1.274-5T require that the taxpayer be able to substantiate the business use of the taxi by keeping adequate records documenting the business and the miles driven. Please consult your tax professional on the adequacy of your mileage records.