| Article Index |
|---|
| Claiming deductions on auto expenses |
| Page 2 |
| All Pages |
I’VE recently heard so much myth regarding the ability to deduct auto expenses in filing an income tax return. Here are a few pointers to consider:
If you start to use your car for business in 2008, you can either deduct the actual operating costs of your car for business purposes or a flat IRS mileage allowance of 50.5 cents per mile for business mileage for the first half of 2008, and 58 cents per mile after June 30, 2008. For 2009, the rate settles back down to 55 cents per mile.
For 2008, the rate for travel for medical care and moving expenses is 19 cents per mile from January 1 to June 30; the rate rises to 27 cents a mile for the remainder of 2008 to reflect the unusually high gas prices. For 2009, it is 24 cents per mile. The rate for travel involving work you perform for a qualified charity is still 14 cents per mile in 2008 and 2009.
If you deduct actual expenses, you can include depreciation, gas and oil, insurance, lease payments, repairs and maintenance, registrations and tires.
2009 Mileage Rate
In 2009, the rate is 55 cents a mile. The necessary records include a mileage log book to claim the expenses under either the standard mileage allowance or the actual expenses method. In the mileage log book, record your business mileage and your total mileage. In addition, if you plan to claim the actual expenses, you must keep the paid receipts for these expenses.
Many stationery and business supply stores sell small, inexpensive notebooks designed to help people track the expenses they incur while driving their cars for business purposes. Or, you can simply jot your mileage down on a standard note pad or on your mobile device, such as a Pocket PC. For each trip, include the date and time, the number of miles you drove, the person you visited and the purpose of the visit. Also, keep receipts for expenses such as parking, gas, and tolls.
Can or Can’t Deduct?
- You can deduct part of an annual registration that is based on the value of the car.
- You cannot deduct your automobile insurance premiums if your car is only for personal use.
- However, if you use your car for business, you may be able to deduct the business portion of your annual premiums.
- You also may be able to deduct some of the cost if your employer requires you to use your own car on the job and does not reimburse you.
| Comments |
|
3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."
| < Prev | Next > |
|---|
