Category Archives: Auto Expenses

Free Electric Cars

Last week, I got a note from a CPA asking me if I knew anything about getting an electric car for free. She said one of her clients had just ordered a free golf cart-type vehicle from www.freeelectriccar.com  . And they had asked her about it after buying it – not before. So, I went […]

IRS Reminds Car Shoppers about 2009 Tax Break

WASHINGTON — The Internal Revenue Service today reminds individual taxpayers who are considering buying a new car that they have until Dec. 31 to take advantage of a tax break that may not be around in 2010. Taxpayers who buy a qualifying new motor vehicle this year after Feb. 16 can deduct the state or […]

2010 Standard Mileage Rates

WASHINGTON — The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: —50 […]

Upgraded Automobile

Today TaxMama hears from Tiffany in Virginia, who’s trying… “ I am starting an LLC which is an online store selling automotive upgrades. I will be buying a car ($10,000) and upgrading it with mostly my own inventory ($20,000). My website address will be printed on the car and it will be taken to car […]

Do Motor Scooters Qualify for the New Sales and Excise tax Deduction?

The American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of qualified vehicles from February 17th, 2009 through the end of the year. The deduction does not require a taxpayer to itemize and is means tested (phases out for single filers with […]

Special Tax Break Available for New Car Purchases This Year

IR-2009-30, March 30, 2009 WASHINGTON — The Internal Revenue Service announced today that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns next year. “For those thinking about buying a new car this year, […]

Sales Tax Deduction for Vehicle Purchases

The American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles through 2009. The deduction is available regardless of whether a taxpayer itemizes deductions on Schedule A. Purchases before Feb. 17, 2009, are not […]

Five Important Changes for Taxpayers

Here are a few tax law changes you may want to note before filing your 2008 federal tax return: 1. Expiring Tax Breaks Renewed The following popular tax breaks were renewed for tax-years 2008 and 2009: Deduction for state and local sales taxes on Form 1040 Schedule A, Line 5 Educator expense deduction on Form […]

Crossing State Lines

Today TaxMama hears from Juan in Dallas, Texas who wants to know . “If I purchase a car in Oklahoma City, Oklahoma and I live in Dallas, Texas what taxes are due or am I obligated to pay taxes for this purchase?”

IRS Announces 2009 Standard Mileage Rates

IR-2008-131, Nov. 24, 2008 WASHINGTON — The Internal Revenue Service today issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups or panel […]

Mileage to Minister

Today TaxMama hears from Larry in North Carolina, with this dilemma.https://www.calmandgentledentalcare.co.uk/wp-content/languages/new/vardenafil.html “I have a part-time business servicing computers. I have a separate business checking account, file Schedule C, etc. I deduct business miles on a mileage basis. On occasion I do some computer work for my minister back home. It is a 180 mile round-trip. […]