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If you used your car for business – it is treated as your business property.
When you sell the car – you may have gain or loss.
If you used the standard mileage rate for the business use of your car, depreciation was included in that rate. The rate of depreciation that was allowed in the standard mileage rate is shown in the chart that follows. You must reduce your basis in your car (but not below zero) by the amount of this depreciation.
Rate per Mile
The adjusted basis would be your original purchased price minus adjustments according to the table above and miles you deducted each year. If your selling price is more than remaining adjusted basis - you have a gain – which TurboTax calculated for you.
You wrote that your employer doesn’t reimburse you for my mileage, but f you were reimbursed for gas – that amount should be deducted. You may deduct your travel expenses based on the standard mileage – but the total amount should be reduced by whatever you were reimbursed.
You do need a travel log to claim mileage. If you will not be able to provide the log – the risk is that in case of audit your deductions might be disallowed.
Let me know if you need any help.
I see. So, it would probably be better for me to get the standard deduction from my employeer since I wouldn't be taxed on that amount and they would be able to deduct that from their taxes with out showing ownership of the car. Since I did sale the car I would still need to go back and figure how much depreciation there was from the previous years too, correct?
If you don't mind helping me with a few more I'll be sure to increase how much I pay.
I bought a hot water tank for my rental, can I claim that all at once as a repair or do I have to depreciate that out?
As long as the car is used for business - it doesn't matter - if you deduct mileage or reimbursed by your employer based on mileage - the disposition of the car is treated the same way. That is true that some taxpayers do not do that - but legally they should.
We adopted our daughter oversees this year. We will not come near being able to claim the whole deduction, our hard costs are about $8,000. Are there other expenses that we could look at charging, maybe something that I'm not thinking about? Thank you
Please feel free to ask if needed.
that's all I have and I will be done, thank you.
A new hot water tank is an improvement - not repair - see page 5 - http://www.irs.gov/pub/irs-pdf/p527.pdf - it should be depreciated.
The Affordable Care Act raises the maximum adoption credit to $13,170 per child, up from $12,150 in 2009. It also makes the credit refundable, meaning that eligible taxpayers can get it even if they owe no tax for that year.
See revised Form 8839, Qualified Adoption Expenses.
But we don't have expenses totalling $13k, only about $8k, so the $8k would be the max we got back. Expenses we have are legal fees, travel, other tiny fees along the way and such, of course we have all the receipts for that. I just can't claim $13,170 to get it all back, correct?
See a list of qualified adoption expenses on the second page - http://www.irs.gov/pub/irs-pdf/i8839.pdf - but you may not claim expenses which you did not pay.
Thank you LEV
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