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As a salesman using your car for work what of the payments is tax deductible?
Wiki User
∙ 16y ago
Ordinarily, expenses related to use of a car, van, pickup or panel truck for business can be deducted as transportation expenses. Use of larger vehicles, such as tractor-trailers, is treated differently and is not part of this discussion. In order to claim a deduction for business use of a car or truck, a taxpayer must have ordinary and necessary costs related to one or more of the following: * Traveling from one work location to another within the taxpayer's tax home area. (Generally, the tax home is the entire city or general area where the taxpayer's main place of business is located, regardless of where he or she resides.) * Visiting customers. * Attending a business meeting away from the regular workplace. * Getting from home to a temporary workplace when the taxpayer has one or more regular places of work. (These temporary workplaces can be either within or outside taxpayer's tax home area.) Expenses related to travel away from home overnight are travel expenses. These expenses are discussed in Chapter One of Publication 463, "Travel, Entertainment, Gift, and Car Expenses." However, if a taxpayer uses a car while traveling away from home overnight on business, the rules for claiming car or truck expenses are the same as stated above. It is important to note that costs related to travel between a taxpayer's home and regular place of work are commuting expenses and are not deductible. Taxpayers can choose to use either the standard mileage rate or actual expenses to compute their allowable business deduction. They may want to figure the deduction using both methods to see which provides a larger deduction. Standard Mileage Rate Method The standard mileage rate may be used to figure the deductible costs of a vehicle that is owned or leased. If a taxpayer wishes to use the standard mileage rate for a leased vehicle, it must be used for the entire lease period. In other words, a taxpayer must use the standard mileage rate for the first year a vehicle is available for business use in order to use the standard mileage rate in subsequent years. The standard mileage rate is adjusted annually by the IRS to reflect changes in the cost of operating a vehicle. In some situations it is adjusted during the year. The 2006 standard mileage rate of 44.5 cents per mile, as well as rates for previous periods, can be found at http://www.irs.gov/taxpros/article/0,,id=156624,00.html. The standard mileage rate is used in place of actual expenses. Taxpayers who choose the standard mileage rate may not deduct actual expenses, such as depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance or vehicle registration fees. Business-related parking fees and tolls may be deducted in addition to the standard mileage rate. Fees for parking at a taxpayer's main place of business or tolls related to commuting to and from that main place of business are personal expenses which are not deductible. The standard mileage rate cannot be used if the taxpayer: * Uses the car for hire (such as a taxi). * Uses five or more cars at the same time (as in fleet operations). * Claims depreciation or a section 179 deduction (Publication 463, Chapter 4). * Is a rural mail carrier who receives a qualified reimbursement (Publication 463, Chapter 4). Actual Expenses Method Actual car or truck expenses include: * Depreciation * Lease payments * Registration fees * Licenses * Gas * Insurance * Repairs * Oil * Garage rent * Tires * Tolls * Parking fees These and other expenses are discussed in detail beginning on page 16 of Publication 463. If business use of the vehicle is less than 100 percent, expenses must be allocated between business and personal use. Only the business use percentage of each expense is deductible. For example, if, based on records maintained by a taxpayer, total actual vehicle expenses for a given year are $2,500 and the vehicle is used 75 percent for business, the allowable deduction using the actual expense method is $1,875 ($2,500 x 75 percent). Recordkeeping It is important to keep complete records to substantiate items reported on a tax return. In the case of car and truck expenses, the types of records required depend on whether the taxpayer claims the standard mileage rate or actual expenses. To claim the standard mileage rate, appropriate records would include documentation identifying the vehicle and proving ownership or a lease and a daily log showing miles traveled, destination and business purpose. For actual expenses, a mileage log helps establish business use percentage. Taxpayers should also retain receipts, invoices and other documentation to show cost and establish the identity of the vehicle for which the expense was incurred. For depreciation purposes they need to show the original cost of the vehicle and any improvements as well as the date it was placed in service.
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∙ 16y ago
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Is homeowner's deductible paid before work commences?
The company doing the work may require you to pay the deductible amount before they start doing the job.
Can you claim gas to work on your income tax?
No. Commuting is a non-deductible personal expense. If you use your car for your job, such as running errands or driving between job sites during your work day, those miles may be deductible.
What could be considered a tax deductible?
There are many different types of tax deductibles. Some tax deductible things include apartment rent, charity donations, work supplies, and property taxes.
Are union dues tax deductible?
Yes Union Dues are deductible only if you itemize your deductions on Schedule A of the 1040 Form of the Federal Income taxes. You union dues will go in the Job Expenses section of this form along with any specialized clothing and boots and such that you are not reimbursed for by your employer. This is only if these items are not suitable for wearing any where else. For instance, blue jeans worn to work would not be deductible but uniforms with the employers logo and or your name on them would be deductible.
Can you claim clothing as a deduction on your income taxes?
Only if the clothing is required by your employer and is the type of clothing that could not ordinarily be worn outside of work. For example, a navy blue business suit is not deductible even if you would never wear a suit outside of work. An orange suit jacket that says "Parking" on the back would be deductible even if you wear it at home.
How does the deductible work?
Your deductible is the portion of the loss that you are responsible for paying yourself.
Is volunteer work in a Hospital tax deductible?
Volunteer work is not deductible. Otherwise, I would not owe any tax!
Is homeowner's deductible paid before work commences?
The company doing the work may require you to pay the deductible amount before they start doing the job.
If you ride the bus to work each day can you writ it off on your taxes?
No you cannot. The trip to and from your primary work location is not tax deductible. Any additional trips from work to other work-related locations are tax-deductible.
If you hit a parked car and the damage is over your deductible how does that work?
If you hit a parked car, the deductible applies to your vehicle, not the parked car. The other vehicle is covered by your liability coverage and there is no deductible attached. You pay the deductible on the repairs to your vehicle, usually to the shop after the work is completed, the insurance company handles the balance directly.
How does home owners deductible insurance work?
I assume you mean how does the deductible work. When you file a claim on any insurance, the insurance company will take out the deductible before it issues the payment to you. In many states the banks are protected and the check has to be made out to you and the mortgagee company.
Working conditions for salesman?
Depending on the work place, a salesman works in an office. He or she may travel long distances too. Most salesmen work on commission.
Can you claim mileage allowance if your work is 45 miles away?
You can NEVER claim costs of going to and from you primary work location, regardless of how far it is. Even if you travel for work during the day (Ex - a salesman), which is deductible, YOU must go to your "office" non-deductible first. The whole tax thing about your primary work location, and what qualifies, and what is a temporary location, etc. goes on for a zillion confusing pages - its almost one of those you know it when you see it things. BUT normal commuting costs - car expenses, gas, tolls, parking, etc., etc., are not allowable.
In The Metamorphosis what did Gregor Samsa work as?
A traveling salesman .
How does your deductible work in home insurance?
The amount of a policy deductible on a homeowners insurance policy is chosen by the policyholder. Your policy deductible is the amount you are responsible for paying before the insurance company will payout for a claim. If you experience a loss to your dwelling or your personal property, your homeowners insurance policy deductible applies. The deductible does not apply to other coverages on the policy. If you experience a loss under your deductible, you will not be eligible for a payout. If your loss exceeds your deductible, your deductible will be deducted from your claims payout check.
Is death of a salesman fiction or nonfiction?
"Death of a Salesman" is a work of fiction. It is a play written by Arthur Miller that tells the story of Willy Loman, a struggling salesman, and his family's struggles.
Are you responsible for paying the deductible if the accident was in a work vehicle?
only if it was your fault
