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

[tyrone27 at gmail.com (Derrick floyd)]

hmm think I understood half of that.  I know I can write off tools at
a expense of being a technican.  where as I need tools of the work I
do on VW's.

On 4/16/05, Patrick Bureau <patrick.bureau@gmail.com> wrote:
> 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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> 
>