The IRS Deductions Blog

Archive for the ‘Car Tax Deductions’ Category

Question: Am I responsible for my insurance deductible if I am rear-ended in a no-fault state?

I was a passenger in an accident where the car I was in was rear-ended and suffered medical injuries. I was told that since i live in a no-fault medical state that I would need to use my own car insurance which has a $100 deductible. Can I recoup this loss from the other driver’s insurance or do I need to go directly to that individual via small claims court?

Answer: Try to deal it out of pocket, otherwise insurance rates will go up much more. You can check how quotes will change here – autoinsurance.undonet.com

Items on Amazon Right Now for No Deductible Car Insurance:

How to Write Off Your Vehicle Expense

There are many situations that allow you to write off mileage, but the rules can be tricky. Here’s what you need to know in case the tax man shows up at your door. 

Muffin in Car Insurance Ad!

Items on Amazon Right Now for Tax Deduction New Car Lease:

AP Enterprise: Calif. lawmakers keep vehicle perk

Rich Pedroncelli In this photo taken July 1, 2010, is the tax-payer provided Chrysler 300 driven by state Senator Sam Aanestad, R-Grass Valley, seen parked in the garage of the state Capitol in Sacramento, Calif.

To Lease Or To Buy A Car?

Items on Amazon Right Now for Carbon Offset Tax Deductible:

Toromont Announces Results for the Third Quarter of 2010

TORONTO, ONTARIO–(Marketwire – Nov. 9, 2010) – Toromont Industries Ltd. (TSX:TIH) today reported financial results for the three and nine-month periods ended September 30, 2010.

Question: Will sales tax on motor vehicles be deductible on 2006 federal return?

Answer: If you bought it in the tax year and you have enough to itemize your deductions yes. Depending on the sales price of the car and the tax you paid on it, it may not be enough to itemize that alone.

I have no Idea what the people under me are talking about. Yes, on your schedule A form, you can either deduct your state taxes or your general sales tax for purchases throughout the year, including your car’s sales tax.

http://www.irs.gov/pub/irs-pdf/i1040sa.pdf

here is the link for instructions for the Schedule A. On page three under line 5 it says

“Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) you paid in 2005 if the tax rate was the same as the general sales tax rate. —-However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. Sales taxes on motor vehicles are also deductible as a general sales tax if the tax rate was more than the general sales tax rate……”

As of now the law has not changed from 2005-2006.

I rest my case.

Items on Amazon Right Now for Sales Tax On Vehicle Deductible:

BRIEFLY: Oct. 14

See what’s happening in and around Marion.

Memphis attorney Vincent Perryman discusses Tax Preparation for 2009 taxes with Gus Wilson Part 1

Question: Can anyone help me come up with ideas for fundraising?

Here’s the scenario. Me and a group of about 14 other people are going to the Presidential Inauguration in January 2009. Each trip is $2,000, which means for all of us to go, we’d need $30,000. We are each paying for it, so basically whatever we fundraise, our trips will cost less. Anyways we have about $2500 saved up so far. We are going around to businesses asking for donations and we will also be selling candy at school starting next week.

So down to my question, anyone have any good ideas to help with raising money beside from the basics like garage sales and car washes? Anyone know any businesses willing to donate? Its tax deductible. Thanks for any information you have.

Answer: The good thing is that you still have some time before the dateline. But the amount is quite high, so I think the best way for you to go would be trying to find some ways to earn some advertising fees.

Try talking to the school counsil. Try asking if they can would allocate some spaces in the school book for your trip. That way, you could find some local businesses to help sponsor you, and you can place ads of them in the school book.

Haha how about designing a shirt with the names of those who sponsor your trip on the back. It might look very uncool, but it could help raise some money.

Or try having a special drama or play, or anytype of show that you think is appropriate. Many parents and townsfolk will attend. Tell them that the ticket price will go to help bringing the students to that event.

Hope this helps give you some ideas. Good luck!

Items on Amazon Right Now for Deductible Car Sales Tax:

Open Door Parent-Child Center Relies on Creative Fundraising

For 29 years, the Open Door Parent-Child Center, a non-profit agency serving Great Neck and its surrounding communities, has offered programs designed for the healthy development of very young children (infants, toddlers, 2-and-3-year-olds), who learn and play in a safe environment while their parents attend social worker-led support groups where they forge new friendships, gain confidence in …

Tips & Advice for Income Tax Deductions : Tips for Sale’s Income Tax Deductions