The Federal Tax Credits Blog

Posts Tagged ‘credit’

Question: Can I write off the purchase price for my car on my taxes?

Here is the deal: I am self employed but work only at one location consistently and with a set schedule. I bought a car in 2008 for $8,000. (I payed the car with a credit card so I am the full owner–there are no monthly payments other then to a credit card that you obviously can’t write-off). I use this car 80% of the time for work purposes: To get me to and from work along with some very low mileage mailing and packaging runs weekly. Maybe 20 miles a week for this in addition to the 50 miles weekly in commute time. (I am justifying why this is a work car).

Can I write this vehicle off — and if so, — what percentage of the purchase price for my 2009 federal taxes?

Thanks.
I meant for 2008 taxes.

Answer: You can depreciate the car over 5 years as a business expense, to the extent that the mileage was business related. Driving to and from your work location is commuting and is therefore NOT business related so does NOT count. You can take the percent of the depreciation that is used for the “very low mileage mailing runs”. You are probably better off taking the standard per mile deduction.

The Price Isn’t Right

For the last two years now, reports have said the same thing with such regularity that they’ve ceased to even make headlines: The housing market is in freefall, except around here. The end of May, however, saw the release of perhaps the most eye-popping finding yet.

Tesla Sedan Unveiled! Tesla Model S Hits the Road

Question: 2008 real estate tax credit?

I bought a home in 2008 and received a “refund” check for $7325 as I was a first time buyer. Does this money need to be paid back? Or not, as is the case with the 2009 first time homeowners credit.

Answer: Yes, the one for 2008 purchases must be paid back over 15 years starting in 2011 with your 2010 tax return.

Don’t Hold Your Breath

This is not your father’s recovery. It might not even be a recovery at all. Debunking the myths of the new American economy

First-Time Home Buyer Tax Credit

Hornby PLC – Final Results

Hornby PLC – Final Results

International Travel Tips : Where to Find Good Airline Fares

Question: Is auto loans tax deductible, if it is made home lien?

Hi All,

Apologies for asking the answer for resolved questions. From the answers it is clear that personal auto loan is not tax deductible. I live in California and I own a home. My credit union says, If I pay $200, then they can make my auto loan as home lien, which will make my auto loan tax deductible.

Is it legitimate to do so, or is my credit union doing something fishy? I am kind of concerned after seeing the earlier answers.

Answer: That really sounds like they are offering you a Home Equity Line Of Credit (or HELOC). The interest on a HELOC is tax deductable since it’s a lien on your home, however that can be very risky if you live in a declining market.

What concerns me is how the Credit Union presented it to you – $200 is probably closing cost on the HELOC, but if you don’t FULLY understand the loan I would NOT go forward with it! California was hit pretty hard by the housing crisis and you might put yourself in danger taking out a HELOC, which does count as a second mortgage.

It might be a great program – don’t get me wrong – but you want to make totally sure you fully understand the details and weigh all your options before you sign anything. The tax savings might not be worth it at all.

Unemployed at 25% in South Africa as BMWs Drive Too Few Jobs

At a Daimler AG (DAI) plant that overlooks the East London harbor in South Africa, robots help produce one of the world’s best-selling luxury cars. A line of one-armed, orange, computerized machines works under minimal human supervision, attaching panels to chassis for Mercedes-Benz C- Class sedans.

Auto Credit Auto financing, car credit, bad credit, …

Question: How does the first time home buyer tax credit work?

My fiance and I bought a house this year so we qualify for the first time home buyer tax credit. I’m just wondering how this works exactly. We are suppose to get a certain amount back according to what we paid for our house. My question is, do taxes get deducted from the tax credit we’d be getting back for the house?

Answer: Assuming that you qualify properly in all other regards for the tax credit, you are eligible to receive 10% of your home’s purchase price, up to a maximum of $8,000. You can claim the credit when you file your income tax return for 2009, using Form 5405. Be sure to include copies of your HUD settlement statement as proof of your purchase.

Your taxes will be reduced by $8,000 for 2009′s return. If you do not owe that much, any excess will be refunded to you via the IRS. Understand, however, that the $8,000 refund is considered taxable income for 2010.

Tax credit ate 2011 home sales

What’s going on with home sales? It’s a question that concerns homebuyers, home sellers, homeowners and renters who’ve contemplated trading their rent check for a mortgage payment.

Home Renovation Tax Credit