How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Merlo Your Own Question
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
9573734
Type Your Tax Question Here...
Merlo is online now
A new question is answered every 9 seconds

A business owner files for an extension due to the nature of

This answer was rated:

A business owner files for an extension due to the nature of her business. She wishes to start a SEP for herself in 2008. What is the latest date dhe may establish the plan and still make contributions for 2008? I think it is April 17, 2009.

Can a self-employed taxpayer who uses the standard mileage rate deduct finance charges paid on the car loan? I think not.

A sole proprietor with a tentative loss on line 29 of Schedule C may deduct mortgage interest as an expense for qualified business-use-of home. Is this true or false? I think it is true.
HelloCustomer

A SEP can be set up for a year as late as the due date (including extensions) of the business’s income tax return for that year.

 

http://www.irs.gov/retirement/article/0,,id=111419,00.html#6

If a self employed taxpayer uses the standard mileage rate for business use of his vehicle, then most other actual expenses may not be claimed. However, this is not true regarding finance charges paid on the car loan. If you are self employed and use your car in business, then even if you use the standard mileage rate, you may claim a deduction for interest you paid on your car loan, in the same percentage as the percentage you use your car for business. Refer to page 16 of the following publication.

http://www.irs.gov/pub/irs-pdf/p463.pdf

Mortgage interest can be claimed for qualified business use of home, even if line 29 shows a tentative loss. While there are some expenses which cannot be deducted if a loss is shown on line 29, mortgage interest is not one of them. The reason for this is that mortgage interest would still qualify as a regular deduction on Schedule A.

http://www.irs.gov/publications/p587/ar02.html#en_US_publink100013757

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank youCustomerbr />




Merlo and other Tax Specialists are ready to help you

Related Tax Questions