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

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

because your only supposed to be able to deduct vehicle expenses that 
are job related (self employed) or business expenses (employee expenses 
- this is explained as a corp sending you to a location and you are 
using your vehicle to perform employee business for your employer - such 
a pizza delivery boy could expense his car he uses for deliveries, but 
any tom dick and joe driving to work every day cannot.

look up the following

2106 form : http://www.irs.gov/pub/irs-pdf/f2106.pdf
2106 Instructions: http://www.irs.gov/pub/irs-pdf/i2106.pdf




Tonee Northam wrote:
> Thanks Derrick,
>  
> Ellen, my wife, drives 76 miles round trip to her job, and Metra (commuter train) isn't available for such commute, which is deductable, atleast in IL.
>  
> So why should driving your own SUMMER (VR6 Corrado) car 45-60 minutes to your job be any different?
>  
> Tonee
> 
> Derrick floyd <tyrone27@gmail.com> wrote:
> I agree with tonee. although I might get locked up. it makes good sense.
> 
> On 4/16/05, Tonee Northam 
> wrote:
> 
>>Hey you never know. I can say that I gave $250 to charity, but never did,
>>the IRS won't flag it, any more than that and they'd want receipts.
>>
>>Now my wife Ellen, she has had to go on a couple road trips and she get's a
>>reimbursment, on her days off, but it was work related.
>>
>>If you can find a loop hole, by all means take it, if I could claim my
>>puppy's food I would.
>>
>>Tonee
>>
>>
>>Roger concha wrote:
>>your gas mileage cannot be deducted since in the guy that just lives around
>>the corner from the shop cannot deduct his mileage. only time you can deduct
>>mileage is when if it's during your work day like a realtor or you are self
>>employeed 
>>
>>On 4/16/05, Tonee Northam 
> 
> wrote: 
> 
>>>So if VW hired you knowingly that you lived in MD, then VW needs you to
>>
>>commute that far to work in turn using your vehicle for their business,
>>sounds like a deduction. hum? 
>>
>>>Tonee
>>>
>>>Derrick floyd wrote:
>>>hmm think I understood half of that. I know I can write off tools at
>>>a expense of being a technican. where as I need tools of the work I 
>>>do on VW's.
>>>
>>>On 4/16/05, Patrick Bureau
>>>wrote:
>>>
>>>>well if you have a business (also known as a Schedule C in tax lingo)
>>>>and you have business expense (such as tools) you should be allowed to
>>>>claim vehicle expenses (also known as a "2106" in tax terms), now their 
>>>>may be limited because of the 8829 - home business expense, square
>>
>>footage.
>>
>>>>for example if you have a room (like I do) that you use for the purpose
>>>>of the business, then the square footage of that room (taking for 
>>>>example 150 sq/ft in a house of 1500 sq/ft = 10% of home and therefore
>>>>your limitator for amount of expense deductible under the 8829) you can
>>>>claim usage of the vehicle as 100% (based on total mileage / amount of 
>>>>mileage driven for business - for example 1500 miles driven on a total
>>>>of 3,000 total miles = 50% business use from that vehicle in the
>>>>business environment) so if you have 200$ 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
>>>
>>>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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>>>>>>>
>>>>>>
>>>>>>
>>>>
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