Car and Truck Deduction Reminders
Q: How do I know what I can deduct for my gas expenses this year. Gas prices are up, now down- It is crazy!
A: Always seek the professional advice from a reputable tax consultant. Here are a few tips and links that may be helpful you you know what to track and what information you need. Be reminded that the Internal Revenue Service recommends that taxpayers become familiar with the tax law before deducting car- and truck-related business expenses.
Overstated adjustments, deductions, exemptions and credits of all types account for more than $30 billion in unpaid taxes annually, according to the IRS. In an effort to educate taxpayers regarding their obligation to file accurate tax returns, this fact sheet, the fifth in a series, explains the rules for deducting car and truck expenses.
http://www.missouribusiness.net/news/irs_news_102606.asp
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 and the date it was placed in service.
Here are some valuable links:
Publication 463, Travel, Entertainment, Gift and Car Expenses
Publication 587, Business Use of Your Home
Publication 583, Starting a Business and Keeping Records
The Tax Gap
Small Business and Self-Employed One-Stop Resource Center
Online Learning and Educational Products
Abusive Home-Based Business Tax Schemes
http://www.missouribusiness.net/news/irs_news_102606.asp
Also you may be eligible for tax IRS gas mileage credits if your business has four or less vehicles. In addition, if you do any business mileage in your own car you can also claim a tax rebate. Hydrogen fuel cell cars attract substantial tax credits as do alternative fuel conversion kits. Tax IRS gas mileage credits for electric hybrids is, however, dependent on the numbers of that particular model sold by the manufacturer.
To get further information on how your standard vehicle gasoline or diesel can be modified, at very low cost and within 45 minutes, so that you can benefit from tax gas irs mileage credits of up to 4000 dollars and at least halve the money you are currently spending on your vehicle fuel costs, visit hydrogen for cars and trucks
Q: How do I know what I can deduct for my gas expenses this year. Gas prices are up, now down- It is crazy!
A: Always seek the professional advice from a reputable tax consultant. Here are a few tips and links that may be helpful you you know what to track and what information you need. Be reminded that the Internal Revenue Service recommends that taxpayers become familiar with the tax law before deducting car- and truck-related business expenses.
Overstated adjustments, deductions, exemptions and credits of all types account for more than $30 billion in unpaid taxes annually, according to the IRS. In an effort to educate taxpayers regarding their obligation to file accurate tax returns, this fact sheet, the fifth in a series, explains the rules for deducting car and truck expenses.
http://www.missouribusiness.net/news/irs_news_102606.asp
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 and the date it was placed in service.
Here are some valuable links:
Publication 463, Travel, Entertainment, Gift and Car Expenses
Publication 587, Business Use of Your Home
Publication 583, Starting a Business and Keeping Records
The Tax Gap
Small Business and Self-Employed One-Stop Resource Center
Online Learning and Educational Products
Abusive Home-Based Business Tax Schemes
http://www.missouribusiness.net/news/irs_news_102606.asp
Also you may be eligible for tax IRS gas mileage credits if your business has four or less vehicles. In addition, if you do any business mileage in your own car you can also claim a tax rebate. Hydrogen fuel cell cars attract substantial tax credits as do alternative fuel conversion kits. Tax IRS gas mileage credits for electric hybrids is, however, dependent on the numbers of that particular model sold by the manufacturer.
To get further information on how your standard vehicle gasoline or diesel can be modified, at very low cost and within 45 minutes, so that you can benefit from tax gas irs mileage credits of up to 4000 dollars and at least halve the money you are currently spending on your vehicle fuel costs, visit hydrogen for cars and trucks
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