Category Archives: Auto Expenses

Excess Lease Mileage

Today TaxMama hears from Kelli in Michigan with this question. “I am currently self-employed and will have over $3,000 in mileage charges due on my lease when I turn the car in next year. When I file my 2008 tax returns, however, I will no longer be self-employed. Although I won’t be billed and pay […]

IRS Increases Mileage Rates through Dec. 31, 2008

IR-2008-82, June 23, 2008 WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The rate will increase to […]

Tax Credit for Fuel Cell Vehicles

IRS Explains How Manufacturers, Purchasers Can Take Advantage of Tax Credit for Fuel Cell Vehicles WASHINGTON — The Internal Revenue Service today issued a notice providing procedures for vehicle manufacturers to certify that a fuel cell vehicle meets the requirements for a tax credit. It also provides guidance to taxpayers who purchase certified vehicles regarding […]

Deducting 2 Vehicles

Today TaxMama hears from Cindy in Kentucky who is skeptical: “I own my own business and travel a lot. I am deducting a truck that I own. With high gas rates can I deduct a car? My accountant has told me that I can only deduct a truck? Can you explain what my options are […]

IRS Announces 2008 Standard Mileage Rates; Rate for Business Miles Set at 50.5 Cents per Mile

Courtesy of the Internal Revenue Service WASHINGTON – The Internal Revenue Service today issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or […]

Mileage Reimbursement Inclusive

Today TaxMama hears from Lynnette in Brooklyn who wants to know, “If an employer pays mileage – is that for the use of the car? Or does it cover gas as well?”

Honda Hybrid Begins Phase-Out on January 1

Courtesy of the Internal Revenue Service – IR-2007-191 WASHINGTON — The Internal Revenue Service announced today that American Honda Motor Company, Inc, has submitted quarterly reports indicating that its cumulative sales of qualified vehicles to retail dealers reached the 60,000-vehicle limit during the calendar quarter ending Sept. 30, 2007. Under the current tax law, the […]

S Corp Auto Expense

Today TaxMama hears from Peter in Massachusetts who has this question. “I am a 100% owner of my S corporation. I used my car, registered in my name, for my business and commuting. I keep a detailed record of mileage and expense. Can I deduct the vehicle expenses on my 1120S?” http://www.audioacrobat.com/play/WSKWQgVf

Employee Driving

Today TaxMama hears from B ored in Skokie, Il, who tells us, “My job requires a lot of travel to clients. My boss states that the IRS law for reimbursement is that he can only reimburse the mileage from the office to a client and from a client to the office. The issue is, that […]