The IRS Deductions Blog

Posts Tagged ‘auto’

Question: Which Florida auto insurance companies have $0 deductibles for glass coverage?

Or do they all have $0 deductibles for glass?

Answer: A lot of companies no longer have $0 deductibles. The minimum may be a $50 deductible. But it varies from company to company.

Items on Amazon Right Now for Auto Deductibles:

JUNIQUES MARKETING SAVING PREPAID DEDUCTIBLE, CASH AND GAS CARDS

Question: Would i have to pay collision deductible if am not at fault for a accident?

I was driving on a 3 lane street, I was in the middle lane and the person on my left was the one who hit me, she hit me trying to avoid hitting someone else. the police came and they told us to exchange info and they left( my insurance told me that they filed a report at the police station). I went and got my car apprised 2 days ago and am waiting for it in the mail. On my coverage i took the $500 Deductible for collision, am just wondering would i still have to pay my deductible if i wasn’t at fault for the accident?

Answer: It depends.

If you entered the claim in through YOUR insurance you will have to pay the deductible to have your car fixed, then your insurance company will go after or subrogate against the other person who was at fault. If your insurance company gets any money back from the other insurance company (who accepts liability for their driver being in fault for the accident) you will be the first person to get your deductible back. Sometimes this process can take 1- 6 months or more to get your $500 back from the other insurance company.

If you entered the claim in through the other person’s insurance, no you do not have to pay a deductible, but your insurance company will not be involved with the claim and you will have to do everything.

Hope this helps.

Items on Amazon Right Now for Collision Deductible Insurance:

In deer vs. car, nobody wins

Deer-car accidents can be costly, according to repair shop owners. Accidents may have peaked during deer-mating season in November but are still happening frequently.

Collision Deductible Reserve Plan – CDRP – IDA Opportunity Video

Question: When you have a deductible with car insurance, who do you pay the deductible to after getting into an accident

I was in a car accident with a hit and run driver and I have collision with a 500 Deductible. So when and to who do I pay my deductible to? And who does my insurance pay their portion to; me or the repair shop for the repairs on my car??

Answer: You have to pay the deductible to your insurance company.
Usually, the insurance company sends you a check to have your car repaired.

Items on Amazon Right Now for Car Deductibles:

My Life: 60s — For Social Security: paper or plastic?

My first Social Security check is due to arrive early next year, soon after I hope to pass birthday No. 62.

DSS Insurance Services Virginia Beach, VA

Question: Estimated tax, do I have to base it on net profit or income? If I itemize for profit …?

(i.e. my income minus rent, food and travel because I stay and work in a city more than 50 miles from my hometown, for 6 months in 2010) then can I still use standard deduction when I file my 1040 for 2011 with my wife ‘married filing jointly’ ? IN that case, will my portion of the income in the 1040 be the net profit? I am on a 1099 and my wife is on a W2. Thank you to everyone who answered my last question…

Answer: Yes your net profit from the schedule C will end up on the 1040 tax form page 1 line 12 and will be added to all of you and your wife’s worldwide gross income and be subject to income taxes at your marginal tax rates after the income tax return is completed correctly.
If you are a self employed taxpayer then you are responsible for all of your own FICA self employment taxes of 15.3% plus any income taxes on your net profit from your business operation at your marginal tax rate.
You will need to report that income, and any related expenses, on Form 1040, Schedule C, Profit or Loss from the Business operation, or you may qualify to use Form 1040, Schedule C-EZ, TO determine your Net Profit from the Business operation. You will also need to use the Form 1040, Schedule SE, Self Employment Tax form to compute and report your social security and Medicare tax on the net profit from the business operation.
For instructions and forms go to the IRS gov web site and use the search box for publication 334 Tax Guide for Small Business a very good place to start with examples
Publication 463 Travel, Entertainment, Gift, and Car Expenses
Use the search box at the IRS gov web site for Small Business and Self-Employed Tax Center
Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more.

Items on Amazon Right Now for Standard Deduction For 2010:

Premier Renewable – Recommended Winding Up and Reconstruction

Premier Renewable – Recommended Winding Up and Reconstruction

Davos Annual Meeting 2010 – Rethinking Compensation Models

Question: Donate a vehicle with tax deduction?

I would like to know how to donate a vehicle, and how to calculate the tax deduction (federal tax ? state tax). Who I should contact with?

I have an used car current market price is about $5000, and would like to sale or donate, but this car requires $1500 to repair if I want to sale it. I would like to know if make vehicle donation (sorry, I won’t fix the car) will be better for me.

Please don’t give me any answer like “Giving it to someone in need of a car will be a lot more charitible …” or “make you feel pretty good to help others …”, I am not in the level to give away few thousands, so please give me advice if you know anything about vehicle donation.
Thanks

Answer: If you donate the car to a 501(c)3 charity, you will get a notice from the charity telling you what they sold it for (they usually sell the donated vehicles). That amount will be your deduction if you itemize on your income taxes, , and you won’t know what it is until AFTER you’ve made the donation and they’ve sold the car. Say for example that they wholesale it for $2500 – they won’t mess with fixing it either, and won’t be able to get bluebook price for a car in need of major repairs. Wholesaling it, they’d probably be lucky to get $2500. Then your tax savings for federal taxes would be $2500 times your tax bracket. If you are in the 15% bracket that would be $375 – in a 25% bracket that would be $625 in tax savings.

MattD is wrong that you can take a deduction of the fair market value of the vehicle – that rule has changed. And since it needs the repairs, the fmv would be more like $3500 anyway, not $5000.

If you don’t already itemize, it’s likely that you wouldn’t get any deduction at all unless you are already very close to being able to itemize.

If you gave it to someone who needs a car, no matter how worthy that person was, there would be no tax deduction – donations to individuals aren’t deductible.

In most states, there would be no state tax savings since donations aren’t deductible most places.

Items on Amazon Right Now for Tax Deduction Vehicle Donation:

Support for UK museums: Public funding vs private giving

LONDON. Nicholas Serota, the Tate director who was at Frieze this week, and his peers are bracing themselves for drastic cuts in arts funding to be announced next week (on 20 October). Cuts of 25% to 30% are bound to have an impact on museums and…

Charity Navigator’s Tax Tips: Valuing Car Donations