Changes in Online Filing
Form 2553 is the form that is used by independent contractors to show the number of qualified business miles that they drove. It is also used to show the total number of miles that they drove, as well as the date that the miles were driven. Form 2553 is used to claim the IRS exemption for the vehicle the contractor is driving. It is also used to show that the contractor is not subject to paying taxes on their vehicle.
Form 2553 is a statement of the use of property for business purposes. It is filed to claim a deduction for depreciation to offset income from a business. Form is filed by the business owner and authorized agent. It is filed to claim a depreciation deduction. Deduction is calculated by multiplying the depreciation rate for the type of property by the business income. Depreciation rate is found on Form 4562.