Deductions and Write-Offs

No. The use of the standard mileage method is limited to a self-employed individual or an employee who operates an automobile for business purposes. Corporations would not qualify. Partners in a partnership would qualify because they are considered self-employed.

Most new business equipment can be either depreciated over its useful life or expensed immediately under Internal Revenue Code Section 179. The 2013 maximum deduction is $500,000 with a $2,000,000 Investment based celing.
The 2012 maximum deduction was the same amounts.
ATRA, extends the amounts deductible by a taxpayer for 2010 and 2011 under Code Sec. 179 to2013
Generally, qualifying property is: Tangible personal property (such as machines, equipment, furniture).
Certain other tangible property used for specific purposes. Single-purpose agricultural or horticultural structures. Certain storage facilities. Railroad grading’s or tunnel bores.

Although you purchased a sole proprietorship for 1 amount, that amount must be allocated to the individual assets for depreciation purposes. Allocation is based on the proportion of the sales price to an individual assets fair market value at the time of the sale. Speak to your local CPA about the allocation formulas.

Children have the legal right to make their own choices at age 18.

The choice of the actual expense method on the first year will bar the use of the standard mileage method ion subsequent years.
If you use the standard mileage method in the first year then you can use the actual expense method in future years.

You should maintain a log or diary of your auto expenses. If you use the actual expense method you should save the actual receipts for gas, oil, insurance, repairs, licenses and taxes. If you use the mileage deduction method you need to maintain a log or diary which lists the date, destination, business purpose, mileage driven (odometer start/end) type and amount of other expenses incurred. Currently there are phone applications for mileage documentation.

Yes. If you use a car entirely for business the cost of leasing is deductible. You cannot depreciate a car you lease. You can choose to deduct the standard mileage rate in lieu of actual expenses including lease payments.

As of 12/31/10 the ban on using the standard mileage rate on auto's used for hire such as a taxi was lifted. The standard mileage allowance for business use of a auto in 2013 is 56.5 cents per mile for business miles driven.

No. Fines for traffic violations, parking violations are not deductible.