my husband works for comcast, they do not give him money for gas. So I know we will be able to use the receipts as a tax deduction, but what about his truck payments?
2006-07-28 02:26:07 · 5 answers · asked by wendycass2000 1 in Business & Finance ➔ Taxes ➔ United States
Does your husband use his truck for business puroses or just commuting? If it is for business purposes, he can depreciate, but the amount of payments on the truck loan are irrelevant. If he is able to deduct travel expenses, he can deduct milage, but not gas directly. You need to talk to an accountant to make sure that you can deduct the items & you need to learn about what is & is not deductible.
2006-07-28 03:05:38 · answer #1 · answered by Homer J. Simpson 6 · 0⤊ 0⤋
The IRS will be looking for a few things in order for you to deduct personal auto used for business. To start with, you'll need to know the beginning odometer reading when your husband started using the car for business, and the ending odometer reading at 12/31/06. Also, he'll need to record the mileage every day that includes business usage (what a pain, huh?). He also needs to keep track of any oil changes, tolls, car washes, etc. that he incurs while driving for work.
At the end of the year, he has two choices: you can either deduct the mileage x the standard mileage rate provided by the IRS, or you can use actual expenses (gas receipts, oil changes, new tires, loan interest, depreciation x percentage of business use). The percentage of business use is determined by dividing the business use mileage by the total mileage driven in the vehicle. The second method is kind of a pain, but with the price of gas being what it is, it might be more beneficial to use actual, particularly if you're driving a gas guzzler. All of this information will be reported on Form 2106, and the total from that form will be brought to "Miscellaneous Itemized Deductions" on Schedule A of the Form 1040. Then, the deduction will be need to exceed 2% of your adjusted gross income from the bottom of page 1 of the Form 1040.
Also, if you sell the vehicle, a portion of it is considered a business asset and you'll have a gain or loss on the sale.
Truthfully, he's probably going to get ripped off on this. If possible, he should try to have Comcast directly reimburse him for business mileage. He'll come out way ahead, believe me!
2006-07-28 09:40:50 · answer #2 · answered by SuzeY 5 · 0⤊ 0⤋
Hi,
If he is an employee, an only use for commuting... Sorry, no tax
deduction... Tax deduction is only if a vehicule is used for actual
work... like sales people to meet clients, etc... If such, than
there is a FIX rate per mile deduction, but if just to get to work and home, than this has no tax deduction.... Sorry...
Good luck...
2006-07-28 10:28:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The Federal tax might be the same from state to state but when it comes to state taxes, each state decides on different deductions. Also in some cases, if you live in one municiplaity but work in another you might have to pay an exta tax to the municipality that you live in.
2006-07-28 09:32:25 · answer #4 · answered by thepolishdude 2 · 0⤊ 0⤋
Keep track of the business mileage your husband puts on his truck. The government offers mileage reimbursement. It changes every year last year I believe it was .44 a mile.
2006-07-28 09:31:43 · answer #5 · answered by Anonymous · 0⤊ 0⤋