The IRS Deductions Blog

Archive for the ‘Car Tax Deductions’ Category

Question: Where can I find free, up-to-date tax information that will help me optimize the amount of money I can save?

I work for a community resource agency that assists people in the community with developmental disabilities, mental retardation, etc. They pay me mileage when I meet with clients but I’m curious to know whether I can claim some other aspect of this job’s travel requirements. I already know about deducting food and entertainment expenses and getting %50 so I don’t need any advise about that. I’m also good about the unreimbursed business expenses too like: computer, paper, stuff like that I seem to have a handle on. I purchased a washer and dryer this year – can I deduct that somehow? What about a new TV? What about car parts and the tools I used to replace them? Can you suggest a software that will help me do my taxes with Itemized Deductions? Thank you ahead of time for your response. Any and all help appreciated even if I said I already know about it!! You might know something that I don’t. ~ Thanks ~

Answer: Take a look at Publication 17 and instruction for Schedule A. The documentation gives you a good list of what you can deduct, requirements, limitations etc. www.irs.gov is the best place to start.

While you are at the IRS site, you may also want to take a look at Energy Credit. If your new washer and dryer meets certain EPS standards, it might help reduces your tax liability.

Since you are reimbursed for mileage you can’t deduct your use of car. No double dipping. Unless your actual auto expenses is higher than reimbursed amount, then reduce the total actual expense by the reimbursed amount and deduct the difference.

To find your actual expenses, you will have to keep track of your miles. If the car is used for both personal and business, you have to prorate your auto expenses to determine the business portion.

Best wishes.

Items on Amazon Right Now for Tax Deduction On New Car Purchase:

Sweeteners added to recession-battling tax breaks

This year’s tax season will look a lot like last year’s, with a few sweeteners added. Most of the tax changes that were put in place in 2009 to spur the economy remained in effect in 2010, even though the recession was officially declared over.

New Car Tax Perks

Question: Is there a per diem tax deduction for independent contractors working out of the country?

I chase hail storms and fix automobile damage associated with that. I worked in Shanghai, China for a month, Arad, Romania for a month, three different cities in Mexico for about two months. I was told that there was a per diem allowance through my taxes for working out of the country. Is this true?

Answer: Either You are self employed and your travel expenses were business related, or you are an employee and they are work related. The IRS has info on what and how much is deductible. www.irs.gov Publication 463

Items on Amazon Right Now for Automobile Tax Deductions:

Looking for tax breaks? Here’s a few you may not know about

It’s no secret that tax forms can be complicated, but there are also tax credits that are yours to claim.

Vehicle Expenses Tax Deduction: Overlooked Tax Deductions

Question: After you file a claim with your insurance agency for vandalism, when do you pay your deductible?

My car got keyed and I tried to buff it out some, the minor scratches came out but, the deep ones are going to have to be repainted. However, I do not have the $500 for the deductible yet. Will they allow me a few weeks to get it or how does that work? I really want to get it painted but, I am not sure how to go about it.

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.noneto.com

Items on Amazon Right Now for How Do Deductibles Work Car Insurance:

Social Security: Medicare questions? Help is available

Social Security: Medicare questions? Help is available

Car Insurance : How Do Body Shops Work With Car Insurance?

Question: Should I consolidate credit card debt into my HELOC?

I currently have about $3500 a credit card with a 15K limit and $8000 on a HELOC with a 15K limit. The interest rate on the HELOC is 2 points lower than the credit card (8.99%). I am considering consolidating the debt onto the HELOC (going unsecured to secured) to benefit from the lower interest rate and also use the interest from the HELOC as a deduction for 2009. I can afford to pay $1000 a month on the HELOC with no prblems and my credit score is in the high 700s. Should I consolidate the credit card debt into the HELOC for the benefit of a lower interest rate and tax deduction or leave it as is? I am thinking my debt ratio on the credit card should balance out and I have access to 55K in credit total (which I will never use).

Answer: Hello. From what i see, you should leave it as it is. Do not consolidate your credit card debt for the benefit of lower interest rate and tax deduction.

Items on Amazon Right Now for Tax Deduction Cards 2009:

Comptroller offers finance tips

This has been a particularly difficult year for personal finances. With costs of almost everything increasing and incomes remaining flat or declining, families are looking for ways to save money.

how to use credit card calculator – morecalculators.com

Question: work-related Tax Deductions?

if i purchased work equipment on credit, at what point can i claim the deduction for my taxes? based on purchase date or payoff date? also, i have been told that a stolen automobile is deductible. is this true? what about child support paid out?
if i purchased work equipment (tools) on credit, at what point can i claim the deduction for my taxes? based on purchase date or payoff date? also, i have been told that a stolen automobile is deductible. is this true? what about child support paid out? my son lives with me and i provide ALL of his support. but his mother still gets a check from me every week. don’t ask me how that bass-ackwards system works

Answer: Work equipment is tax deductible if you were not reimbursed. Additionally, it depends on whether it is an “equipment” like a paper shredder or a piece of equipment like a computer; the paper shredder can be considered “supplies” so is deductible in the tax year that you paid for it.

If it’s a big ticket item like a computer, you’re better off checking with a tax accountant because businesses have to depreciate equipment whether in one lump sum or over its useful life. And it will depend on what your company’s preference is and how they amortized equipment in the past.

As for your automobile it can be deducted as a theft or loss but only up to the amount that was not reimbursed by your insurance company.

Child support is not deductible.

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Hope on four wheels

CHARLESTON — For a maximum of $5 a day — around $30 a week or $120 a month, D.C. Metro travelers can go wherever they need to go — to work, to play, all for less than half the cost of the average American monthly car payment, gas prices a complete non-issue.

Auto Donation Tax Deduction – How To Not Get Screwed!