The Federal Tax Credits Blog

Posts Tagged ‘fuel’

Question: If I purchase a car for my business, how much of a tax credit can I get for that?

I live in California and I need an SUV or big truck for work, can I claim this as a tax deduction?

Answer: There’s no credit for buying a vehicle in general, though certain hybrids may qualify for one.

If you are self-employed you can either claim a Section 179 deduction for the vehicle though there are some restrictions on certain SUVs. You can always depreciate it, regardless of the vehicle type.

If you are not self-employed you may be able to take a miscellaneous itemized deduction on Schedule A, through Form 2106 for unreimbursed business expenses. You can either take a standard mileage rate for the business use or actual costs, apportioned for the business use of the vehicle. If you take actual costs you can take a depreciation deduction as part of the costs.

Tax Credit Incentive About To Expire

Only a few days remain for consumers to cash in on a federal program designed to put money back in their pocket.  The federal car sales and excise cash reduction program will come to an end this Thursday.

Ling’s new Routemaster London bus – Ling at LINGsCARS.com