I work as a salesperson for a new home developer. I am required to have a 4 door, late model car to chauffer prospective clients, etc. Can this be considered tax deductible ? What proof do I need ? How much is deductible ?
2006-07-18 11:53:09 · 2 answers · asked by dababyispretty 3 in Business & Finance ➔ Taxes ➔ United States
Yes it can. You're supposed to keep a log of mileage. Starting and ending. There is a formula in the tax code for deducting. Keep all your gas reciepts, repair receipts, bank loans and lease payments.
You should consult with at tax expert on this to be safe.
Generally you would use Shedule C and rate it is a business expense not compensated by your employers, such as a carpenter having their own tools.
You also need to have something in writing or a witness who will testify that this is required for work. Should you get audited and your employer get called in you can't have them back tracking and saying "oh, we never insisted on that!"
That would cause you to lose the deduction.
2006-07-18 12:05:54 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Yes, your car is deductible. For more details, go to the IRS website:
http://www.irs.gov
and search on business deductions.
2006-07-21 10:36:51 · answer #2 · answered by ps2754 5 · 0⤊ 0⤋