OT : Taxes, and Home business Rules and Deductions on Vehicles.

[patrick.bureau at gmail.com (Patrick Bureau)]

well if you have a business (also known as a Schedule C in tax lingo) 
and you have business expense (such as tools) you should be allowed to 
claim vehicle expenses (also known as a "2106" in tax terms), now their 
may be limited because of the 8829 - home business expense, square footage.

for example if you have a room (like I do) that you use for the purpose 
of the business, then the square footage of that room (taking for 
example 150 sq/ft in a house of  1500 sq/ft = 10% of home and therefore 
your limitator for amount of expense deductible under the 8829)  you can 
claim usage of the vehicle as 100% (based on total mileage / amount of 
mileage driven for business - for example 1500 miles driven on a total 
of 3,000 total miles = 50% business use from that vehicle in the 
business environment) so if you have 200$ in gasoline expense related to 
business use, then the 200$ of gas become 100$.

in the same way you could use the laws of vehicle depreciation to 
depreciate the value of the vehicle, and this number also will be 
limited by the usage of home business expense rules.

Cheers.....


Derrick   wrote:
> hmm damn.  well I know I can write off my Tools as a business expense
> because its business related.  so if I can't do gas what about vechile
> maintance
> 
> On 4/16/05, Patrick Bureau <patrick.bureau@gmail.com> wrote:
> 
>>Well since I work for Intuit (largest Tax software and CPA support team
>>in America) I can answer this question;
>>
>>you can only have vehicle deductions if your self employed or can claim
>>employee expenses on your return (such as traveling folks (ie: carpet
>>salesman)  or if you own your own company (like I do) you can claim a
>>portion of it (usually based on the "Home Office" deductions rules,
>>then the percentage of your home business (based on square footage) can
>>permit you to claim vehicle expense based on this home business thus
>>limited to the percentage of the home office, and or based (greater of
>>either) of your mileage expenses as long as their are related to the
>>business question.
>>
>>next question...
>>
>>Intuit processed over 38 Millions electronic returns this year... go figure.
>>
>>
>>Derrick floyd wrote:
>>
>>>Hi guys.  Wanted to ask a tax question.  can I write off gas on my
>>>taxes if I travel from MD to VA everyday to work?  also if my job is
>>>in VA do I pay MD and VA state taxes or just VA taxes?
>>>
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>>
>>
>