The IRS Deductions Blog

Posts Tagged ‘cars’

Question: can I get a tax credit for donating my car, or only a tax deduction?

I want to donate a working pick-up truck to charity. I have heard all about the tax deduction I would be eligible for, but isn’t a deduction only helpful if I OWE money on my taxes each year? I always, always get money back… so will donating a car be beneficial for me? Or am I better off just selling the truck?

Answer: You get an itemized deduction for whatever the charity sells the truck for. They’ll send you a letter telling you how much it sold for. If you don’t itemize, you get no benefit from the donation.

A deduction reduces your taxable income and has value whether you are getting a refund (you’d get a larger one) or owe (you’d owe less). There never has been a credit for charitable donations that I’m aware of.

At any rate, don’t expect a windfall from the donation. If you’re in a 15% tax bracket and they sell it for $500, your tax benefit will be $75.

Items on Amazon Right Now for Cars Tax Deduction:

Tax on New Cars Can be Deducted

As the end of the year approaches so does the deadline to make last minute purchases or gifts that might effect your 2009 taxes.

Funny Car Ad – Vehicle tax deduction or cra auto reduction?

Items on Amazon Right Now for 2009 Sales Tax Deduction Irs:

IRS revises tax guide website

The Internal Revenue Service said taxpayers can get the most out of new recovery tax breaks and get a jump on preparing their 2009 income tax returns by consulting a newly revised, comprehensive tax guide now available on www.irs.gov.

Aero-TV: Bonus Depreciation — A Tax Plan For Your …

Question: How and Will Obama’s new car sales tax deduction help me?

I have qualified for a loan and am purchasing a new Audi this week for $34,000 after trade in and rebates; I am a DEPENDENT making about $7,000 gross in 2009. In indiana sales tax is 7 percent.
Thanks for the comment
I am 20 years old and graduating next year from a good school. Already have a job lined up from my internship. My mother co-signed the loan.

Answer: You can deduct sales tax of the car. See here for all of the details:

http://www.irs.gov/newsroom/article/0,,id=204519,00.html

I concur with Net Advisor’s opinion otherwise.

Items on Amazon Right Now for Sales Tax Deduction Car:

Car Sales Surging in Last Week of December, According to Edmunds.com

SANTA MONICA, Calif.–Edmunds.com, has noticed a tremendous boost in web activity in the past week. “We could potentially reach a December SAAR of 11.7 million units given the current site traffic trend,” noted Edmunds.com Senior Analyst Jessica Caldwell.

Camelback Car Central – Deduct Your Sales Tax

Question: Am I entitled to a tax deduction for parking may company provided car on my property?

I am located in New York, USA
Company provided car for daily work activities in the field.
I can use the car for personal use and pay for personal mileage.
I am required to take the car home with me.
I pay for commute miles home.
I cannot use my own car for work.
My town requires I park all work vehicles off public streets.
There is no alternative parking facilities provided by my company to store there vehicle.
Thank you!!

Answer: If you can show actual payments associated with parking the company vehicle on you property, they should qualify as ‘un-reimbursed employee business expenses’ and be Itemized Deductions subject to on 2% AGI floor.

I doubt the IRS would accept the ‘home office’ argument made by someone above. The link below is a PDF file about home office deduction. Generally to qualify, you must use part of your home as a principle place of business, to meet with customers, or to store inventory. The vehicle does not appear to qualify.

Items on Amazon Right Now for Tax Deduction New Vehicles:

A chance to help community

Special to CCN Has the holiday season left your wallet a bit lighter? When every penny counts this season, donations of gently used clothing and other unwanted items to Goodwill Industries of Denver can help put a little back in your wallet with an end-of-year tax write-off.

H&R Block Getting To Know Your Taxes: Highlighting Tax Relief

Getting proper auto insurance for a rental car is a process full of uncertainty and more than a little confusion. Should I get insurance from the rental company? Am I covered if I use my credit card to rent the car? Does my auto insurance policy cover rented vehicles? All of these are questions that come to mind when thinking about obtaining auto insurance for a rental car.

The first step you should take before renting a car is to check on your existing auto insurance coverage and with your credit card companies to find out what type of rental auto insurance you already have in place. This can be done before you ever rent a car so you enter the process with some background knowledge.

If you are renting a car for pleasure and not business, most likely the coverage and deductibles you have with auto insurance on your car will apply to the rental. If you have comprehensive auto insurance your rental car will have the highest level of coverage, but if you have dropped comprehensive or collision auto insurance on your car remember the rental won’t be covered in case of theft or an accident. Also check with your auto insurance provider for any riders it might offer that might be less expensive than buying auto insurance through the rental company.

Rental car insurance offered by your credit card is going to vary widely depending on the type of card, the issuer and even the bank that provides your credit card. Typically any coverage provided by your credit card will involve damage or loss to the rental, but will exclude your personal belongings, personal liability, other cars and other’s property. You should check with each credit card you carry to find out which one offers the most secondary coverage for rental car insurance.

Once you rent a car and you know where you are covered through your personal auto insurance and credit cards, you will have the option to add coverage through the car rental service. These options include: loss damage waiver, liability insurance, personal accident insurance, and personal effects insurance.

Items on Amazon Right Now for Auto Liability Deductible:

Toyota Pedal Maker CTS in Spotlight as Recalls Widen (Update3)

Feb. 1 (Bloomberg) — CTS Corp. was honored three times by Toyota Motor Corp. for the quality of the accelerator pedals that have thrust the 114-year-old electronics supplier into the center of a global recall of as many as 4.2 million vehicles.

Car Insurance : Types of Car Insurance Liability