Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
Can Corporations use the standard mileage rate method in calculating auto depreciation?
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
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.
When can a child decide which parent he or she will live with?
Asked Thursday, December 22, 2011 by an anonymous userCPA Answer:
Children have the legal right to make their own choices at age 18.
Mileage or actual expense - Annual election
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
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.
If you use the standard mileage method in the first year then you can use the actual expense method in future years.
Car or van depreciation - differences
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
Vehicles such as vans, SUVs, trucks that weigh more than 6,000 pounds are not subject to depreciation dollar deduction limitations.
Electric vehicles - credit
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
Yes. There is a credit for plug in electric vehicles. In the current year the credit is up to $7,500 regardless of the vehicles weight.
What documentation is needed to deduct auto expenses?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
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.
Auto lease payments
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
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.
Taxi - standard mileage rate
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
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.
Traffic tickets
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
No. Fines for traffic violations, parking violations are not deductible.