fbpx

What Tax Deductions Can I Take For Using My Car?

As the tax year ends and you scramble to pull together your year end tax deductions, people often ask us whether they can get  a deduction for using their automobile.  It’s important to understand these rules for both employees and business owners alike as this could mean big bucks in your pocket come tax time. According to the IRS Topic 510 business use of a car (http://www.irs.gov/taxtopics/tc510.html), you can generally figure the amount of your deductible car expense using one of two methods: the standard mileage rate method or the actual expense method. If you qualify to use both methods, before choosing a method, you may want to figure your deduction both ways to see which gives you a larger deduction. Please refer to Publication 463, Travel, Entertainment, Gift and Car Expenses, for the current standard mileage rate. If you use the standard mileage rate, you can add to your deduction any parking fees and tolls incurred for business purposes. ...

Read More →

What If I Do Not File My Taxes?

I am still amazed about how many people call us or come into our office having not filed their taxes for multiple prior years.   Some people file for an extension ever year at tax time, while others work feverishly to get them done by April 15th.  What happens if you don’t file your taxes? Obviously, we don’t ever recommend using this as a strategy.  As the famous saying goes, the only thing you can count on in life are death and taxes.  Beyond the interest you will owe for failure to file/failure to pay/underpayment issues, there could also be a number of penalties that you could face as well. Criminal Fraud – Unless you want the old Wesley Snipes issue, evading pay taxes is illegal anyway that you slice it up.   It’s my opinion that the IRS is going to get even tougher on these non-taxpayers, and if you are found guilty you could be subject to massive court determined ...

Read More →