Auto Allowance Income Tax Question

Auto Allowance Income Tax Question

I received a $500 per month auto allowance.

It showed up on my W2 without anything withheld making my taxable income higher.

Can I deduct mileage or depreciate the vehicle?

Auto Reimbursement

by Kathleen
( Hollis, Maine)

My company requires all employee's to have reliable transportation to drive clients to and from community events, medical appointments, religious functions and any other event that might come up. they do provide reimbursement for mileage if wanted. Can I deduct part of the operating costs for my car. I live in Maine.

Brand New Car purchase

by Andrea
(San Francisco, CA)

Is tax for this purchase can be tax deductible?

Hello Andrea,

Thank you for your question.

Yes, the sales tax paid on the purchase of a new vehicle may be tax deductible on your Schedule A Itemized Deductions. You would only be able to claim the greater of what you paid in either state income tax or sales tax.

Car Donation With Title Not In My Name

by Shawn
(Massachusetts)

I bought a car but did not transfer the title to my name yet, it's still in the old owner's name. My name shows in the back as the buyer.

If I donate this car will I be able to claim tax deduction for me?

Thanks.
Shawn.

Car Purchase Loan Interest

I bought a new 2010 Toyota last year and understand I can deduct the sales tax as part of the general sales tax deduction; however, is there any way I can also deduct all/some of the interest I've paid associated with the car loan I set up to purchase the vehicle??
Thanks in advance for the assistance!

Hi,

Thank you for your question.

You can only deduct the interest if you use the vehicle for business.

Car Loan Interest

I bought a new 2010 Toyota last year and understand I can deduct the sales tax as part of the general sales tax deduction; however, is there any way I can also deduct all/some of the interest I've paid associated with the car load I set up to purchase the vehicle??
Thanks in advance for the assistance!

Gas Expenses Reimbursed

My friend uses her car for work and submits her gas receipts to her employer who reimburses her completely. When my friend files her tax return, she uses her actual mileage and claims the maximum mileage amount that the the IRS allows.

It seems to me that she is not doing this correctly since most of the expense of operating her car (the gas) is really being paid for by her company. Is what she is doing legal?

Gas Money as Income

I drive for my employer. He gives me gas money. Do I have to claim that as income?

Leasing Work Vehicle

by Ian
(Iowa)

I am self-employed in property management. I own two vehicles one for private use and one, a truck, is mostly for work. My accountant deducts some amount each year for mileage on the work vehicle. I was wondering is leasing a vehicle would be more advantageous tax wise.

Thanks

New Car Sales Tax Credit

My car was totaled in 2009 and when I bought a new car, my insurance company reimbursed me for some of the sales tax (not all). Can I still claim the sales tax on my tax return this year?

Hello,

Thanks for your question.

Any amount of sales tax paid out of pocket by you (not reimbursed) should be deductible on your 2009 tax return.

Purchasing Car Through Loan?

by raj kumar
(karnataka)

hello sir/madam, I just want to ask u a question!

I'm planning to take a car which costs around 13-lakh.. the financer company said me to pay a downpayment of 6-lakh. !by showing the proff of my rentals agreement etc..

I didn't maintain IT RETURN file bcoz I started my business a month ago.

My question to u is that will the Income tax authority will ask me proff regarding the amount of downpayment payed by me(6lakh)?

Use of a Truck on a Farm!

I bought a truck to use on my small farm this year can I take it off on my taxes?

Vehicle Taxable Benefit

by Alexina McDonald
(Oakville, Canada)

My employer is selling me a car for $0 but is adding $5000 to my income as a tavable benefit. Will I have to pay income tax and sales tax on the vehicle?

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