Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
Is the costs of me driving to work deductible?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
No. In general, costs of commuting between your home and workplace are not deductible. Costs for gas for
Is the costs of me driving to work deductible?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
No. In general, costs of commuting between your home and workplace are not deductible. Costs for gas for your car, train, bus, tolls and parking fees are not deductible.
What is the IRS publication that explains auto expenses?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
IRS publication 4636 deals with Travel, Entertainment and Car Expenses.
Publication - auto expenses
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
IRS publication 463 deals with Travel, Entertainment and Car Expenses.
Artists - Car expenses
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
If you meet certain requirements to be identified as a "Performing Artist" you can deduct all of your car expenses as a adjustment to income directly on Form 1040 instead as a itemized deduction on Schedule A. There is a 5 step requirement test that must be answered before a person is identified as a Performing artist.
Bonus depreciation limit for vehicles
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
Bonus first year depreciation for vehicles placed in service in the current year that were new and used over 50% for business is $11,160 for auto's and $11,360 for light trucks and vans.
What documentation is needed to deduct a home office?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
In addition to actual receipts of expenses paid, It is a good idea to photograph your home office and keep it with the tax return it is being claimed on. This would add to the proof requirement of business use exclusivity.
How do I allocate indirect expenses in my home office?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
Generally the number of rooms identified as the home office divided by total rooms equals your percentage of business use.
What expenses are deductible in my home office?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
Expenses directly allocated to the home office such as painting the office or buying furniture for the office are 100% deductible. Other expenses indirectly incurred are deductible at a business expense allocation percentage. These would include Real estate taxes, mortgage interest, depreciation, utilities, rent, insurance, snow removal and security.