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For Tax purposes Could I expense car payments and the insurance for car you use to get to your auditions?
Wiki User
∙ 14y ago
If you use your car in your job or business and you use it only for that purpose, you may deduct its entire cost of operation (subject to limits discussed later). However, if you use the car for both business and personal purposes, you may deduct only the cost of its business use.
You can generally figure the amount of your deductible car expense using one of two methods: the standard mileage rate method or the actual expense method. If you qualify to use both methods, before choosing a method, you may want to figure your deduction both ways to see which gives you a larger deduction. Please refer to Publication 463, Travel, Entertainment, Gift and Car Expenses, for the current standard mileage rate. If you use the standard mileage rate, you can add to your deduction any parking fees and tolls incurred for business purposes.
To use the standard mileage rate, you must own or lease the car; the car must not be used to transport persons or property for compensation or hire, for example as a taxi; you must not operate five or more cars at the same time, as in a fleet operation; you must not have claimed a depreciation deduction using the Modified Accelerated Cost Recovery System (MACRS) on the car in an earlier year (including any additional first-year depreciation or "bonus depreciation" or any method other than straight-line for its estimated useful life; you must not have claimed a Section 179 deduction or the special depreciation allowance on the car; and you must not have claimed actual expenses after 1997 for a car you leased. You cannot use the standard mileage rate if you are a rural mail carrier who received a "qualified reimbursement".
Further, to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses.
However, for a car you lease, you must use the standard mileage rate method for the entire lease period (including renewals).
To use the actual expense method, you must determine what it actually costs to operate the car for the portion of the overall use of the car that is business use. Include gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments) attributable to the portion of the total miles driven that are business miles.
Wiki User
∙ 14y ago
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What is gaap for accounting for audit fees you intend to record the estimated current year audit fees to the provision for audit fee account your CPA states you cannot accure until service is rendered?
You are booking a known expense.
What is the difference between fraud and error in terms of an audit?
Proven Intent.Fraud is intentional; error is accidental.An auditor can discover items which are not correct, usually financial matters. The incorrect items may be matters of omission, or figures which are incorrect, or reports of things which did not occur at all.As an example, consider a person's expense report. The person reporting might have omitted that he received cash from people sharing a meal, for their portion, and stated only that he paid the entire cost of the meal. That would be fraud, deliberately seeking reimbursement for an expenditure that was already reimbursed by others. Or a person may report that he spent $25.00 for a meal, when in fact the cost was only $15.00. (Both of these are called "padding" one's expense account.) That would also be fraud, the deliberate misrepresentation of an expenditure to get an unwarranted reimbursement.The expense report might also include, say, claim for a taxi fare when in fact the individual walked, or took a bus, or rode in taxi with another person who actually paid the fare. That would be fraud, by claiming an expenditure which did not occur at all.Suppose instead that the individual attached a credit card receipt to his expense form, showing a charge of $35.00; but instead he transposed the figure to $53.00 by making a typing error. Or, suppose he added a column of figures incorrectly, inadvertently increasing his total expenses by $20.00. Those are simple errors, which an auditor will readily spot, and make the appropriate changes.In the first set of examples, the individual filing an expense report was intentionally trying to be reimbursed more than he was entitled to. That is fraud. When fraud is detected, the company may demand reimbursement, or may penalize the offender (e.g., by a temporary suspension), or may seek criminal prosecution of the offender (for very large amounts). Or, if a pattern of repeated though small frauds is discovered, the individual may be reprimanded, demoted, transferred, or even fired.Some people show a pattern of repeated errors, either because they have some handicap (e.g., dyslexia) or are merely inattentive or sloppy. When an auditor discovers such a pattern, the individual may receive a remonstration("be more careful"), or his reports may be more carefully scrutinized in the future. One who repeatedly makes errors, regardless of intent, may be transferred to another type of work.Obviously, fraud and/or errors are not limited to expense reports. They may occur in any type of reporting, not just financial. For example, inventory reports, time reporting, attendance reporting, and so on.For the company, either fraud or errors can be very costly. One of the main purposes of audits is to protect the company from such unwarranted costs, and to lead the company toward obtaining reimbursement when possible.For the individual, errors are simply unwise. They can make a person more subject to scrutiny or rebuke, and can reduce the confidence that management has in that person or his work. Fraud, however, is not only unwise (and unethical), but is downright dangerous. It can lead to loss of position, loss of employment, and loss of freedom.Errors and fraud are not limited to employees, of course. They can involve customers, or they can be exclusively done by customers (or other outsideers). For example, a clerk can make an error by giving a customer the wrong change; or the clerk can commit fraud, by intentionally giving a customer (his freind) too much change. Or a customer can attempt to return a product to a store different from where he bought it (an error) or he can switch price tags between two products (a fraud).Auditing is very diffucult, because there are virutally infinite types of errors, and also virtually infinite types of frauds. Some can be quite subtle, and difficult to detect. And there are many "grey areas", where an incorrect statement may be either error or fraud. It may not be important to determine which, but it is always important that an auditor finds the mistake, and corrects it.
WHEN DID SHERLOCK START TO LIVE AT 221B BAKER STREET?
Sherlock Holmes moved into 221B Baker Street shortly after meeting John Watson. They were introduced by a man that knew both of them were looking for a roommate to share the expense. Holmes lived there from 1881 until 1903.
What happened to John Wayne's Wild Goose?
When John Wayne found out he had terminal cancer he put his beloved Wild Goose up for sale. Selling the yacht mere months prior to his death. After a deal was made with a buyer, the Goose's engine had a minor issue. Wayne being the good man he was replaced the engine for the new owner at his own expense. She fell into disrepair in the late '80's. The yacht was completely redone and the Wild Goose is still in operation and does cruises that are available to the public through Hornblower Cruises & Events in Neport Beach, California
How far does the queen elizabeth go on a gallon of fuel?
At her very fast service speed of 28.5 knots, QE2 can travel 50 feet per gallon. For a full calculation of her fuel economy refer to the following web page : Contrary to popular belief, QE2 was always economical, and even more so after she was re-engined with no-expense-spared state of the art diesel-electric propulsion in 1986-7. At the speed of a normal cruise ship, QE2 can move 125 feet per gallon. At her high speed service speed (28.5 knots) she can move 50 feet per gallon.
Is insurance on inventory a direct expense?
insurance is an indirect expense.............
Are COBRA premium payments for dental insurance an allowable medical expense deduction for tax purposes?
Yes. However, remember that the typical taxpayer has to reach a threshhold of about 7.5% of their adjusted gross income before they can deduct any medical expenses. Check with a tax accountant for your specific situation.
Is insurance an administrative expense or selling expense?
Insurance is an administrative expense as administration is authorized to do all these kind of expenses.
What is the difference between prepaid insurance and insurance expense?
When payment for insurance is made advance of actual expenses then it is called prepaid insurance which is asset for business until insurance benefit is utilized while insurance expense is actual insurance expense when insurance benefit is taken.
Is insurance a direct or indirect expense?
indirect-expense
Is life insurance premium considered an expense?
Do you mean to write off for tax purposes? It can be depending on the business situation but if you personally write of your own insurance your death benefit would be a taxable event. 4LifeGuild
What is a cobra payment?
Under certain circumstances, a separated employee may retain his group health coverage at his own expense. COBRA (Consolidated Omnibus Budget Reconciliation Act) payments are these post-employment health insurance payments.
Is insurance expense an asset or liability?
Prepaid insurance would be an asset. Insurance expense is when the insurance has been used up, thus making it an actual expense on the Income Statement. Whereas Prepaid Insurance on a Balance sheet is classified as an Asset.
Are mortgage payments on an investment property an expense?
Any payments you must make from Gross Income to keep the property running are expenses. Although a mortgage is usually also called a Liability Expense, it is still an expense to run the property.
Where in Dallas Texas can you find a dentist that will not charge any out of pocket expense and accept only the insurance payments?
AnswerIf you have a co-pay and the dentist does not accept it (only accepts payment from insurance as full) then the dentist is committing insurance fruad. This can lead to revokation of license, fines and prison.
What kind of business expense does not involve cash payments?
Barter
Insurance an asset or expense?
Insurance is an expense, it should never be considered an asset. That is why cash-value policies are not recommended. Stick with simple term insurance and you will save money.
