|
Posted by Katie on February 2, 2007, 8:15 pm
Please log in for more thread options
> I'm deducting mileage on form 2106. I'm a traveling music
> teacher, I commute to an office and from there am sent to
> various places to teach.
>
> It is my understanding that my mileage accrued during the
> work day (after arriving at the office) is deductible. I
> travel 30,000 miles a year during the workday outside of my
> commute to the office. This adds up to a very sizeable
> deduction. I am no reimbursed for any travel expenses except
> tolls.
>
> The car I use is for both business and personal, with only
> about 10,000 miles a year being for personal. I sold the car
> this year and bought another car. Turbotax is taking the
> $4000 I sold the car for and counting as income, which is
> reducing my refund by over $600. I owed $4500 on the car
> when I sold it for $4000. It is not like this money was
> "profit" or "free and clear".
>
> Form 2106 is clear cut and says "Date Vehicle Sold" and
> "Sale Price". After entering these fields, Turbotax reduces
> over $600 in my rebate. It never asks wether there was a car
> loan?
>
> If it matters, I do not depreciate the car as an asset. I
> just take the mileage deduction each year.
>
> Any help would be greatly appreciated, thanks.
Somewhere TT must ask for your basis in the car, which is
the amount you originally paid for it, less any allowed or
allowable depreciation. Since you have always claimed the
mileage allowance, I don't think you need to take any
depreciation into account. The balance due on the loan is
irrelevant. The gain or loss on the sale of the car is the
amount you received for it, minus what you paid for it.
That's almost certainly a loss. Since you did not treat the
car as a business asset, it's a personal loss and not
deductible.
Katie in San Diego
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap