2007-02-16 08:52:18 · 5 answers · asked by Tanya H 1 in Business & Finance ➔ Taxes ➔ United States
If you itemize you can include the sales tax paid on the car as a deduction even if you use a table for the rest of the sales tax. There are a few restrictions so go to the the IRS web site for details.
2007-02-16 08:58:17 · answer #1 · answered by Barkley Hound 7 · 0⤊ 0⤋
If it's your personal car, then no you can't. If you own a business and your car is owned by the business an used by the business, then yes but you'd have to depreciate it, not just take the cost of the car in the year you bought it. In that case, if you use it at all for personal use, you'd have to prorate expenses between business and personal use, and only take deductions for the business use.
If you are using your own car in the performance of your job as an employee, and are not reimbursed for it by your employer, you can deduct the mileage you drive in performance of your job at 44.5 cents per mile. You can't deduct the miles you travel back and forth between your home and your primary jobsite though.
2007-02-16 09:08:49 · answer #2 · answered by Judy 7 · 0⤊ 1⤋
Only if it's for business or professional use. If you also use it for personal reasons, you deduct a percentage of the purchase price.
For example, if you use the car for personal use 10$ of the time, you can only deduct 90% of the car's purchase price and payments.
On the bright side, business use also lets you deduct some of the depreciation of the vehicle over time.
2007-02-16 08:57:02 · answer #3 · answered by Anonymous · 0⤊ 3⤋
If it's used for a business. The only thing you can deduct other than that in CA is the CA license fee/state tax for registration.
2007-02-16 08:56:34 · answer #4 · answered by Betty Boop 5 · 0⤊ 2⤋
Yes, if your job is based around it. If your job description states that you must have a car to perform your job (i.e.-Mary Kay distributor).
2007-02-16 08:57:21 · answer #5 · answered by Anonymous · 0⤊ 2⤋