Semi Truck.....Cents per Mile Method

Realtor comes in with a new client. Client wants her there during our meeting. Realtor wants client who is an Semi Truck driver (owner operator) to use the cents per mile method for the big rig truck instead of actual costs. She says she has seen other CPA's do this. She wants the client to qualify for a mortgage. I don't think you can do the cents per mile method with a big rig truck that drives in the hundred of thousand miles per year. Anyone have any thoughts?

She also wants the client to not report all of his expenses in order to boost up the net income on Sch C.

I would encourage you to get the realtor in and explain that A. They're praticing tax law and B. Committing TWO federal felonies. 1. by incorrectly reporting his expenses for tax: The IRS considers a semi-truck to be a qualified non-personal-use vehicle. As a truck driver, you must claim your actual expenses for vehicles of this type. So, you can’t use the standard mileage method. and 2. by then overstating his income for a mortgage.

They might want to stop talking like that.

Realtor of the month..."willing to lead a client into mortgage fraud and frivolous tax positions to get the sale".

Realtor comes in with a new client.. If this means new to you, the realtor should pre-determine whether they have picked a preparer as hungry as they are and who has their standards.

Thank you for the response. The realtor called this morning to chew me out because the client called her actually crying because I called him to warn him that he needed to be careful not to commit mortgage fraud, conspiracy and mail fraud. She also did not appreciate my phone call to her separately also warning her of the same things.

Yikes, a semi truck driver crying! Not an image I'd expect.

Guess he's not getting the house...

Yep....Realtor was trying to dangle the prospect of sending me "Lots more clients".

You could go undercover and become a paid informant.