Mr X is a Pharacetuical Sales Representative and about to file a Schedule C.?

Question

He had $2000 in meals and entertainment. Likewise he paid $1400 in health insurance. Where will he file these expenses. Under which form?

So is Code section 179 a form or a regulation?


Is calculation of mileage and calculation of depreciation on a vehicle the same?

He bought a ford tauras on jan 1st, 2006. He had $500 in repair, He drove 26000, mile for business and had a commute of 1200 miles and also drove 3000 miles for personal use. So where should this be reported? So If I calculate mileage under standard mileage rate, how should it be depreciated?


I would appreciate every answers.

Answer 1

This sounds like homework.

Read the following links:

Meals and entertainement expenses:

http://www.irs.gov/publications/p463/ch06.html

Health Insurance:

http://www.irs.gov/instructions/i1040gi/ar02.html#d0e6766

Forms to file:

http://www.irs.gov/businesses/small/article/0,,id=99200,00.html

Code Section 179:

http://www.irs.gov/publications/p946/ch02.html

Mileage:

http://www.irs.gov/publications/p463/ch06.html

That should lead you in the right direction.

Answer 2

Meals and entertainment would show as deducitions on his schedule C, but only half of the amount can be deducted.

A code section is a regulation, not a form.

You can't take both mileage and actual expenses on the same vehicle. Depreciation is one actual expense, so if you take mileage, you don't also take depreciation.

In your example of mileages, only the 26K business miles would show anywhere on the tax return - they'd go on schedule C. There would be no depreciation shown anywhere.