Have a Tax Question? Ask a Tax Expert
Welcome to Just Answers, I will do my best to Answer your Question.
Very interesting....great job!
Well as an expense, on your schedule C, it would be an expense under "other expenses."
You can also depreciate it over 5 years.
I will not follow under any Federal Credit under the Credit Act for Electric Cars or Hybrids due to the fact that those manufactures had applied for this credit to be given out..
But as a sole owner of a company... you can expense it out due to the fact it's not an "actual cost" of maint. of a vehicle in which you can still take your mileage too.
When satisfied, please hit the green accept button and again, congratulations.
Thanks for your response. On "other expenses" of schedule C I would include the cost of all the parts and the cost of the vehicle ($2,000.00), right? Do I need to file a form 4562 also? Since I am deducting the cost of the truck already the first year how can I depreciate it over 5 years or is that just an option in lieu of expensing it all the first year? If I understand you correctly I would put my total costs on line 9 of sch. C (car and truck expenses) And also fill out section 4 and 5 ("Information on your vehicle" and "Other expenses".
yes that would be correct. The cost of the vehicle would go into the 4562 and the miles, if any... but the equipment you installed would go onto the "other expenses" to be expensed out.
You have the choice to expense out for the 5 years for the equipment, but you would know better as to your financial situation as to if you would benefit a total deduction under 179 or to depreciate it out.
If it were me, even though it's electric, I would still calculate the miles out at the end of this year when using for business.
I am thinking about buying Turbotax software but how much would you charge to do my taxes next year? I only have income from a part time job and probably a loss from my start up electrical contracting business. Do you live in California? Can you give me a ballpark estimate?
I would love to do your taxes but per the policies of Just Answer's I am unable to solicit my services to you, but you can go to www.ZipTaxes.com :) if you know what I mean... but usually the fee is around 150.00
Thanks a lot.