The IRS Deductions Blog

Archive for the ‘Car Tax Deductions’ Category

Question: I am a non-resident alien, which line in 1040NR I can put to get tax deduction for buying a car?

Which line I can put my interest from buying CD and having saving account? Who can help my tax for free or low price fee?

Answer: You posted this in the wrong category. This is for Canadian taxes.

There is no deduction in the US for buying a car.

Items on Amazon Right Now for Tax Deduction Buying Car:

Personal Financial Planning Tips : How to Create an Investment Portfolio

Question: What are the stipulations for passive activity loss carryovers?

My wife and I own several rental properties, however we make over $150k a year. All of our properties are operating at losses, but we are not currently able to deduct any of the losses because of our income.

How do we go about carrying forward this passive activity loss tot he time when we sell the properties? How do I document this? I reported all of the losses on my taxes for this year. Do I just need to keep track of the non-deductible amounts? It is already itemized on my tax return.

Thanks in advance.

Answer: You track all passive activity losses, allowed an unallowed, on Form 8582.

Items on Amazon Right Now for Carryover Deductible:

The Volvo Legend www.volvocountry.com Pre-owned Superstore

Question: Need $30K 4 home improvement. Credit card at 5% for life or HELOC at 8.5%? I’d pay off either loan in 5 years.

I did some calculating. If I use my credit card, I would have paid $3,970 in finance charges over the term of the loan. If I use the HELOC, I would have paid $6,930 in interest over the life of the loan. Based on my tax bracket, I would gain about 25% of the HELOC interest as deductions, thus the only interest that I would have paid with the HELOC is $5,198.

Everyone keeps telling me that the HELOC is the way to go, as it is tax deductible, but I can’t seem to justify the numbers. Any suggestions out there?

Answer: Let’s start with the basic principles. Make an appointment with your Banker and have them work out the numbers. Remember ANY time you make an investment or improvement to a real estate property it will appreciate and thats a good investment. Your’re rigjht HELOC interest is tax deductible and that makes good sense as your friends have mentioned above. Why NOT let your Home Equity fund your home improvement versus paying a debt to a Credit Card company? Just a suggestion. Good Luck!

Items on Amazon Right Now for Tax Deduction Credit Card Interest:

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Question: President signed ?

The president signed a bill for 40% of emissions on cars to be decreased in the next decade. It is a beginning. Toyota Prius,is the number one choice for fuel efficiency.Civic Camry Honda Kia Hyundia seemed to be on top in fuel efficiency. Now How about the tax deduction for purchase of new vehicles. How does that work?

Answer: Actually it did work. The tax credit and allowance expired this past year..but the sales for hybrid vehicles soared when folks were getting a break on their income taxes. The problem I have with hybrids is that the technology is stop-gap and not the ultimate or permanent solution to the issue. The solution lies closer to the use of fuel cell technology utilizing hydrogen as fuel.

Items on Amazon Right Now for Tax Deduction New Vehicle:

Fund Your 401(k) or IRA First?

It depends on your situation, but these 10 questions can help you find the answer.

Tax Tips: HIRE Act (ASL, Captions & Voice Over)

Question: Is it better to buy a new car with a home equity loan or cash? Mortgage interest is tax deductible.?

Answer: If you have cash to buy the car then pay cash. If you take out a home equity loan to buy the car then you will be paying interest. You will pay more interest on the loan then you would be earning on the cash if you have it in savings. You’ll also pay more interest than what you would save on your taxes. Mortgage interest is only deductible if you itemize deductions. Do you normally itemize or do you take the standard deduction? I just don’t see that it would be smart to use a home equity loan to buy a car.

Items on Amazon Right Now for Car Loan Deductible:

News in brief

Here are a selection of brief news items from this week’s paper edition, and possibly a few news briefs that didn’t make it in the paper.

Payless Car Sales in Mesa Red Tag Event