The IRS Deductions Blog

Posts Tagged ‘car’

Question: Tax Donation Deduction – Maximum?

Lets assume you owe $20,000 in taxes. If you donate $20,000 to some charity,
can you deduct that full $20,000, thus owing $0.00 in taxes?

Answer: No.

The savings is based on your tax bracket. If if you are in the highest tax bracket (35%), a $20,000 donation would only save you $7000 in taxes ($20,000 x .35). You would still owe $13,000.

Items on Amazon Right Now for Tax Deduction Charity Donation:

Fundraisers calendar

To have an item considered, submit it in writing two weeks in advance. Include a daytime phone number readers may call. Send items to Fundraisers, P.O. Box 8099, Walnut Creek, CA 94596-8099. To obtain an announcement form, call 925-943-8235.

Tax Deductible Charitable Donations for 2010, 2011

Question: Federal Income Tax question – Car donation for charitable deduction?

I am a 21 yr old full time college student who is still a dependent on my mom’s tax return (she itemizes). I would like to donate my car which has a Fair Market Value of $5,000, to take advantage of the charitable deduction on my taxes. I currently have $300 in deductions without the charitable deduction.

Answer: The first two people who answered the question are correct, but they missed one point. If the charity uses the car as part of its mission (A church providing a car for the minister, etc.), then the Fair Market Value is used, but if the value is more than $5,000 you need to have it appraised. The appraisal report (don’t forget to keep a copy) must be attached to the tax return.

Now, back to reality. Your Itemized Deductions must exceed $5,700 for you to get any benefit from them. Also, even if you have other deductions that total $5,700 (meaning that the $5,000 is fully utilized), you only save a fraction of the FMV. If you are in the 15% tax bracket, the $5,000 donation would save you $750 in taxes. In other words, you are better off financially if you sell the car.

Items on Amazon Right Now for Tax Deduction Car Donation:

Community Calendar: Library book sale kicks off with preview day on Tuesday

To list an event happening in Greater Haverhill, submit no later than 10 days before The Haverhill Gazette’s Thursday publication date. Listings run as space allows. thursday, Sept. 16 Zumba Gold: Class geared toward active Baby Boomers and seniors, led by certified instructor Stephanie Smith Thursdays at 9:30 a.m. at Citizens Center, 10 Welcome St., Haverhill. $5 per session.

Car Donations-Car Charity Donations-$500 Tax Deduction PLUS $1000 GIFT CARD

Question: Alaska employee’s pay a .54% unemployment tax. Is this an allowable deduction on schedule A?

Only Alaska and New Jersey have an employee paid portion of the state unemployment tax. I’ve searched the IRS website, but I have not been able to determine if I can deduct this amount on schedule A. I’ve also looked in my J.K. Lasser tax book, but I guess because only two states have the tax, it isn’t covered. Thanks

Answer: Contributions to state benefit funds. As an employee, you can deduct mandatory contributions to state benefit funds withheld from your wages that provide protection against loss of wages. Mandatory payments made to the following state benefit funds are deductible as state income taxes on Schedule A (Form 1040), line 5.
California Nonoccupational Disability Benefit Fund.

New Jersey Nonoccupational Disability Benefit Fund.

**New Jersey Unemployment Compensation Fund.

New York Nonoccupational Disability Benefit Fund.

Rhode Island Temporary Disability Benefit Fund.

Washington State Supplemental Worker’s Compensation Fund.

West Virginia Unemployment Compensation Fund.

Alaska is not listed so any portion paid to Alaska would not qualify

Publication 17

http://www.irs.gov/publications/p17/ch22.html#d0e50424

Items on Amazon Right Now for Tax Deduction Books:

Print Magazine

Higher education becomes more expensive every year, and no matter their child’s age, many parents continually wonder how they are going to pay for college.

Book trailer for CliffsNotes Graduation Debt

Question: what can I itemize on my tax return?

I spent over 20,000 in home improvements. Things like a new pellet stove, new floors, new window treatments, paint, new sliding glass doors, new deck, all work was done ourselves. We purchased a new car but not one of the alternate fuel vehicles (2008 ford focus) can I use the tax payed on the car purchase? What else can I use as an itemized deduction? I know for sure I can use my real estate taxes and my mortgage interest, but what about my school taxes? hot water heater? refrigerator? gas (not for work) gas (for work travel out of state)?park pass? sales tax on food, clothing, home cleaners…? and last,if my husband gets a per-Diem in his check can he use his work expenses as write offs (hotel rooms, clothes, gas, food)?

Answer: You can only claim a insulation deduction (new windows, weather striping, storm doors) up to $1000. You can’t claim the tax on the car you purchased.

I would say you need to talk to an accountant because you don’t want to claim something wrong and the IRS audit you and charge you interest and penalties for stuff done wrong.

Items on Amazon Right Now for Tax Deduction Home Sale:

The Hindu Business Line : Vedanta-Cairn deal: Tax Dept hopes to collect a tidy sum

The Finance Ministry is hopeful of collecting a tidy sum as capital gains tax from the Vedanta-Cairn Energy Plc deal announced today in London. The deal involves part sale of Cairn Energy Plc’s shareholding in Cairn India to the London-listed Vedanta Resources.

Recovery: Vehicle Tax Deduction – January 2010 (ASL, Captions & Voice Over)

Question: Where do I deduct my auto sales tax when filing?

I purchased a car in 2008 and now that I am filing my taxes online, I can’t find the option to deduct my sales tax. I live in TN. Does anyone know if I can make this deduction and where?
I am itemizing this year. I am using H& R but am not sure where in that process I would enter my sales tax information.

Answer: You may only claim sales tax if you do not deduct state income tax. If you itemize, you would checkout Publication 600 from the IRS to get the amount of sales tax you can claim and then add the sales tax generated by the auto. If the total is more than you paid in state/local income tax, then you should take the sales tax deduction, if not, you would want the income tax deduction.

All this assumes that you itemize your deductions. If you do not itemize, then you can’t claim the sales tax or income tax deduction.

Items on Amazon Right Now for Tax Deduction Auto Sales Tax:

Press Briefing by Press Secretary Robert Gibbs, 7/14/2010

See below for answers to questions(marked with an asterisk) posed in the briefing that required follow up.   *The meeting lasted roughly an hour, and Valerie Jarrett also attended.     **By the day of groundbreaking, Compact Power estimates it will employ 70 in construction jobs.  This will rise to 200 by September and 300 at the peak of construction.  The factory will hire more than 300 full …

Recovery: Vehicle Tax Deduction-Claim It January 2010