Home Page link  

Vehicle Interest Expense

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
Vehicle Interest Expense MDinDestin 04-17-2006
Posted by MDinDestin on April 17, 2006, 12:05 am
Please log in for more thread options
 I have a rental property located in another state.

I always take the standard mileage deduction for the miles
spent driving to check on the property. I also deduct my
meals and other travel expenses.

My tax preparation software is leading me down a path to
deduct a portion of the loan interest on the vehicle. My
former tax preparer never asked me about loan interest.

We have a family car that I used to drive about 500 miles
round trip to check on the rental property twice last year.

Can I deduct a portion of the loan interest paid on this
vehicle? If so, how is it calculated.

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by San Diego CPA on April 19, 2006, 12:37 am
Please log in for more thread options
> I have a rental property located in another state.
>
> I always take the standard mileage deduction for the miles
> spent driving to check on the property. I also deduct my
> meals and other travel expenses.
>
> My tax preparation software is leading me down a path to
> deduct a portion of the loan interest on the vehicle. My
> former tax preparer never asked me about loan interest.
>
> We have a family car that I used to drive about 500 miles
> round trip to check on the rental property twice last year.
>
> Can I deduct a portion of the loan interest paid on this
> vehicle? If so, how is it calculated.

No. you're taking mileage therefore, you don't get other
auto-related expenses such as gas, maintenance, insurance,
depreciation or interest.

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Harlan Lunsford on April 20, 2006, 3:25 pm
Please log in for more thread options
San Diego CPA wrote:

>> I have a rental property located in another state.
>>
>> I always take the standard mileage deduction for the miles
>> spent driving to check on the property. I also deduct my
>> meals and other travel expenses.
>>
>> My tax preparation software is leading me down a path to
>> deduct a portion of the loan interest on the vehicle. My
>> former tax preparer never asked me about loan interest.
>>
>> We have a family car that I used to drive about 500 miles
>> round trip to check on the rental property twice last year.
>>
>> Can I deduct a portion of the loan interest paid on this
>> vehicle? If so, how is it calculated.

> No. you're taking mileage therefore, you don't get other
> auto-related expenses such as gas, maintenance, insurance,
> depreciation or interest.

Next question will be; "can I take depreciation also?"

One of my clients wasn't pleased with my answer and went
"back" to his previous preparer (who said she was a CPA from
Los Angeles btw) who allowed it and the mileage rate.
(However I checked the Georgia secretary of state's web site
and she was NOT registered as a CPA in the state she
"practices". or mis practices.

ChEAr$,
Harlan Lunsford, EA n LA

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Paul Thomas, CPA on June 29, 2006, 12:15 am
Please log in for more thread options

> I have a rental property located in another state.
>
> I always take the standard mileage deduction for the miles
> spent driving to check on the property. I also deduct my
> meals and other travel expenses.
>
> My tax preparation software is leading me down a path to
> deduct a portion of the loan interest on the vehicle. My
> former tax preparer never asked me about loan interest.
>
> We have a family car that I used to drive about 500 miles
> round trip to check on the rental property twice last year.
>
> Can I deduct a portion of the loan interest paid on this
> vehicle? If so, how is it calculated.

If so, it's computed as a percentage based on business miles
/ total miles.

--
Paul Thomas, CPA
paulthomascpapc@bellsouth.net

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Tim on June 30, 2006, 6:27 pm
Please log in for more thread options
You are entitled to deduct interest paid on a business
vehicle, regardless of which method you choose for vehicle
expenses, so long as you are self employed. The authority
within the Code to deduct interest related to a trade or
business, or a passive activity such as a rental is
completely separate from that for vehicle expenses. As with
any other deduction of interest, however, you must properly
allocate its use proportionally, as mentioned by Mr. Thomas.

Tim

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Similar ThreadsPosted
What type of interest expense? February 27, 2007, 8:20 pm
Hybrid Vehicle Tax Credit March 30, 2007, 3:56 am
Re: Hybrid Vehicle Tax Credit March 30, 2007, 10:46 pm
Vehicle Depreciation and Rental Property February 12, 2007, 1:01 am
S Corp & Taxes on Hybrid Vehicle November 25, 2007, 9:24 am
New vehicle bought, want deduction, not depreciation February 10, 2008, 11:54 pm
Can mortgage interest paid to a foreign lender be considered portfolio interest (tax exempt)> March 10, 2007, 1:06 am
Form 6251- Line 4 of Home Mortgage Interest Adjustment Worksheet, accounting method needed to determine a HELOC interest usages. October 16, 2008, 10:51 am
Transfer Business Vehicle From One Business To Another June 12, 2006, 9:18 pm
Gas Expense tax Line?? January 24, 2007, 2:15 am

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap