Happy end of tax season day!!

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Diddy
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Re: Happy end of tax season day!!

Post by Diddy »

Tax question I'll ask here. My wife started doing home health this last year. Can we depreciate her car now? It's almost exclusively used for work. She does get paid mileage.

Freed Roger
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Re: Happy end of tax season day!!

Post by Freed Roger »

Subject: Happy end of tax season day!!
Diddy wrote:Tax question I'll ask here. My wife started doing home health this last year. Can we depreciate her car now? It's almost exclusively used for work. She does get paid mileage.
1) Is she reimbursed at the IRS rate of 54c per mile?

2)Is she an employee with W-2, or is she independent contractor/1099 filing a Schedule C?

There is no short answer,- but replies to those questions will help determine if it's worth pursuing. If she's an employee and gets some to all of it reimbursed - it's not likely to help much/ if at all. Also - the rules/recordkeeping for taking actual expenses (depreciation, gas, maintenance) can be ornerous. most people opt to take the standard mileage rate to determine their expense instead, however if she is reimbursed that amount already, then there is nothing to deduct.

Being reimbursed the standard mileage rate, is almost always the best possible situation tax-wise.

Diddy
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Re: Happy end of tax season day!!

Post by Diddy »

She's an independent contractor. I think she gets .42 per mile. I kind of assumed it wasn't depreciable but hadn't ever asked. I'm going to assume that we can expense repairs and fuel.

Freed Roger
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Re: Happy end of tax season day!!

Post by Freed Roger »

The easiest and most common route is to take the excess - 12 cents times the business miles. Thus, if she was reimbursed 42cents on 10,000 miles, she'd get $1200 deduction for the excess on schedule C. You'd do this instead of figuring depreciation and actual costs.

There's pros and cons to doing actual or mileage.

This website, (trying to sell a mileage tracking app or something) has some of the pros and cons. Of course the IRS website has it all too and publications. The method above is what I see the most.
https://www.mileiq.com/blog/standard-mi ... -expenses/

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Tim
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Re: Happy end of tax season day!!

Post by Tim »

Paying off student loans with our refund. Almost debt free.

Freed Roger
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Re: Happy end of tax season day!!

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we owed enough to fund a round of taxpayer-financed chocolate cake for Trump and entourage at MiraLago.

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IMADreamer
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Re: Happy end of tax season day!!

Post by IMADreamer »

I actually got some back from the fed this year. First time ever I think. Thanks Obama! no really thanks, it was because of the Obamacare subsidy. I over estimated my income. Hooray for terrible commodity prices!

Next year I'm going to try and figure out how to right off a new classic car. Maybe a 70 Challenger. I'm possibly getting into media blasting and when I say I, I mean I'm basically funding my cousins business venture and it seems like a 70 Challenger would be the perfect advertising piece. Not sure if my tax guy is going to go for it though. He was on the fence.

Freed Roger
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Re: Happy end of tax season day!!

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You can write about anything off and pay zero taxes. PM me and not that damn Leroy and I will direct you to my offshore account for where to wire $599.99 to learn all you need to know.

Diddy
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Re: Happy end of tax season day!!

Post by Diddy »

Freed Roger wrote:The easiest and most common route is to take the excess - 12 cents times the business miles. Thus, if she was reimbursed 42cents on 10,000 miles, she'd get $1200 deduction for the excess on schedule C. You'd do this instead of figuring depreciation and actual costs.

There's pros and cons to doing actual or mileage.

This website, (trying to sell a mileage tracking app or something) has some of the pros and cons. Of course the IRS website has it all too and publications. The method above is what I see the most.
https://www.mileiq.com/blog/standard-mi ... -expenses/
So one more question. From what your saying I'm going to say that we don't have to report what she does get paid as mileage as income.

Diddy
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Re: Happy end of tax season day!!

Post by Diddy »

IMADreamer wrote:I actually got some back from the fed this year. First time ever I think. Thanks Obama! no really thanks, it was because of the Obamacare subsidy. I over estimated my income. Hooray for terrible commodity prices!

Next year I'm going to try and figure out how to right off a new classic car. Maybe a 70 Challenger. I'm possibly getting into media blasting and when I say I, I mean I'm basically funding my cousins business venture and it seems like a 70 Challenger would be the perfect advertising piece. Not sure if my tax guy is going to go for it though. He was on the fence.
See that's why I'd like to have someone other then my tax guy to ask questions to. I honestly don't want to do anything illegal but I'm probably in favor of pushing the line alittle more then he is.

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