The IRS Deductions Blog

Posts Tagged ‘cars’

Question: How do you go about filing a one time tax deduction for a vehicle?

I started a company but purchased the vehicle before I got the actual LLC. My vehicle is used for my business and I wanted to file for a one time tax deduction for using it. Help….

Answer: Your LLC must own the title to the vehicle. Can you refi with you as an individual personally guaranteeing the business will pay? You can still do mileage in a car your LLC doesn’t own.

Items on Amazon Right Now for Tax Deduction Vehicle Purchase:

A Promise Fizzles

More than a decade after the federal government approved the first captive to fund employer-sponsored benefits, the rate of adoption has lagged behind expectations.

Buy or Lease?

Question: I bought my mom a car as a gift, although it was titled in her name. Can I deduct the sales tax on my taxes?

I made the check payable to the dealer for the amount of the car; however, the dealer listed her as the “buyer” on all the paperwork. She does not itemize, so the sales tax deduction is worthless to her. It’s a gift to her either way, but could I construe the gift as being the car (since I made the check payable to the dealer) versus the money?

Answer: Had you bought the car in your name and then gifted it, you would have a deduction. It sounds however that you gifted the deduction to her.
The result may be true, but it also seems unfair as a result of a technicality.
You may a case for claiming the deduction, but it isn’t a strong one. You could try, and if you get examined, just cave in. If you don’t get examined, then you win.
The above advice is solely because I think you have a case. Otherwise, I would not recommend it. Just so you understand I’m not trying to cross any lines, just resolving doubt in your favor.

Items on Amazon Right Now for Sales Tax Deduction For Car Buyers:

West Fraser Announces Fourth Quarter Results and Increased Dividend

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Feb. 17, 2011) – West Fraser Timber Co. Ltd. (TSX:WFT) today reported earnings after discontinued operations of $39 million or $0.89 per share on sales of $719 million in the fourth quarter of 2010 and earnings after discontinued operations of $166 million or $3.84 per share, on sales of $2,886 million for 2010. “

Used Car Donation : How to Donate a Car in the NYC Area

Question: New Car Credit Questions regarding taxes.?

When I was trying to file my taxes last night, I put in the deduction for the right off on the sales tax for buying a new car last year. I noticed that when I put the deduction in, it only gave me $200 extra back for sales taxes paid of 2500. I was expecting to get the full credit back. can anyone explain if I’m doing something wrong? Should I receive the total sales tax back or not? Thank you all for your help! = )

Answer: It’s not a credit, it’s a deductions. At best, you only get your tax rate times the deduction. You are in the 10% tax bracket, so you only got $200.

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

Bolt into an electric car

From an unassuming office in South Melbourne, Singaporean-Australian businessman William Tien plans to help write the next chapter of automotive history.

McGeorge Tax Story_Track1.asf

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

Items on Amazon Right Now for New Car Sales Tax Deduction Irs:

Entertain these tax savings

Business owners get a gift from the government when they celebrate the holidays with employees and customers: Tax Deductions.

Life Changes Equal Tax Savings