What is tax vehicle expenses?

Question

I worked for a company from June 05 to June 06. I did a lot of car repairs, becuz my car kept breaking down. How can I use this vehicle expenses on my tax. Or can I not.

Answer 1

If you used the vehicle in the course of your employer's business you may deduct the business portion of all of the expenses and costs of maintaining it. You can either keep track of all costs and apportion them to business and personal use OR you can take the standard mileage rate deduction of 44.5 cents per mile for all business miles driven. You must reduce this by any reimbursements from your employer. You can NOT claim commuting costs, however.

You claim Employee Business Expenses on Form 2106 and then transfer the total to Schedule A, Itemized Deductions. The amount you can claim will be reduced by 2% of your Adjusted Gross Income.

If you do not have enough itemized deductions to make this worth while you cannot claim any deduction, however.

Answer 2

What grew to become into the artwork objective? Commuting? if so, that's not deductible. If it grew to become into required by using your business enterprise which you utilize your individual motor vehicle without repayment, you deduct the expenses on type 2106. you may the two use the standard mileage fee of fifty cents in line with mile for the employer miles or apportion the quite expenses for the year. the two way you want a contemporaneous log of ALL miles pushed, for employer, very own and commuting. (No log = no deduction. era.) The totals from type 2106 to to schedule A as a 2% misc itemized deduction. of direction, you desire sufficient itemized deductions to make it valuable to itemize so if that's your only itemized deduction and the excellent is below your common deduction quantity it does no longer do you any stable.

Answer 3

Was the car used primarily for business, such as you made sales calls with your car? Were you reimbursed by your employer for car expense? Usually not, talk to your tax preparer