Wondering what tax write offs, or tax deductibles I can use...?

Question

I am married filing jointly, me and my husband are both employeed and together earned approx, 80-90k this year. We own our home, and have a 1st and 2nd mortg. we live in the state of cali,my husband works in the construction business and sometimes has to travel long distances to his jobs.. but he works for a company who does not pay any mileage reimbursement etc.. can he write mileage/ gas off? also we had a car that was stolen this year, and was salvaged we did not have any reimbursement from ins. since we only had liability... can we write this off? are there any other common things that can be deducted?

Answer 1

You can indeed deduct the mileage to his constructions jobs. Not the entire amount though. You can not deduct the mileage to his normal destination of employment, such as the construction offices. So let's say his employers office is 10 miles away. But his construction job is 40 miles away. Then you take the 40 minus the 10, and he is able to take this amount 30 miles (double for round trip) 60 miles each day.
The business mile rate for this year is 48 cents per mile.
If he uses his truck to pick up materials or anything else like that, then this mileage is also deductible. If he has a second job - then the mileage to the second job is deductible.
If you have to store work related tools or other things at your home, then the square footage of the room is deductible. This can be tricky though, because the room is supposed to be dedicated only to business purposes.
Also - mileage for charitable tasks is a deduction at a lesser amount. I have a pickup truck, and my church always asks if I can pick up this or that for them. I coached a little league team - so the mileage to and from the field for games and practice. Both of these situations are deductible, but at about 14 cents per mile (not sure of that amount).
The other method is "actual expenses" but you have to keep good documentation of each trip to and from the work site, and have receipts for everything.
You obviously already know about your mortgage interest, property taxes, state income taxes - all being deductible.
The stolen car should also be deductible. Not sure what form you claim this on.
You can get a lot of information and forms from www.irs.gov -- and not a bad idea to consult a tax pro.
Good Luck

Answer 2

The standard deduction is $10,700 for MFJ this year. If you spent more than that on mortgage interest, you will itemize.

It's difficult to claim a casualty loss. The casualty loss starts with the value the day before it was stolen and then subtracts 10% of your AGI before anything added to the schedule A.

It's an it depends question about whether or not your husband can deduct any mileage. The concept of tax home (see irs publication 463) can make the tax home whereever the work is and then nothing would be deductible. Even if you could deduct the business expenses, only the amount above 2% of your AGI gets as far as the schedule A...and being in California, chances are you will be subject to AMT which won't recognize any of them.

Answer 3

You can get some deductions if you itemize. Your standard deduction for Married Filing Jointly is $10,700. So you will itemize only if deductions exceed $10,700.

You can get Mortgage interest deduction and for property taxes paid.

You can deduct for car mileage and other job related expenses. You can claim mileage related to your business (job). This does not include commuting miles that is travel from home to your first office and back from you office to home. These employee business expenses are subject to 2% AGI limit.

Then you car deduct Car theft under Theft and casualty deduction. But again it is subject to $100 and 10% AGI rule. That is allowed deduction is loss amount minus $100 minus 10% of AGI.

For this you should read instructions to schedule C (Form 1040). Also if most of the deductions related to one of you, then may be you should file as Married Filing Separtely. Commute your taxes both ways and figure out which one is the best.

Answer 4

You'll itemize - look at schedule A and its instructions. You'll have mortgage interest and real estate taxes, and state income taxes. Depending on the value of the car that was stolen, you might get a deduction there - same for mileage. There might be some other things also like charitable contributions.

Answer 5

Non reimbursed work expenses including mileage can be written off. Consult a tax pro. Even someone at HR Block or something like that could help.