Business Deductions
- Amortization
- Business Losses and Net Operating Losses
- Car and Truck Expenses
- Day-Care Services
- Depreciating Business Property
- Depreciating Your Car
- Domestic Production Activities Deduction
- Health Insurance Deduction
- Home Office Deduction
- Meal and Entertainment Expenses
- Organizational Costs and Start-up Costs
- Qualified Plan Awards
- Schedule C Expenses
- Section 197 Intangibles
- Should You Sell or Trade in Your Car?
- Start-up Costs
- Travel Expenses
More Tax Topics
- Business Structures
- Hiring Workers
- Retirement
- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Need Some Deductions for 2011?
Don't overlook these!
Updated for 2011
Small Business Deductions: Car and Truck Expenses
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Employees and Car Expenses
If you are an employee and use your car for your employer's convenience and were not reimbursed for your expenses, use Form 2106 (instructions) to report your unreimbursed expenses.
Enter your total unreimbursed expenses on Schedule A, line 21 as a miscellaneous itemized deduction which is subject to the 2% of adjusted gross income (AGI) floor. This means, your total miscellaneous deductions must exceed 2% of your adjusted gross income to get any tax benefit.
- If your employer reimbursed you at a rate lower than the IRS allowance, you may use the IRS rate to deduct the excess over your employer's reimbursement.
There are two IRS mileage rates for 2011:
- January 1, 2011 through June 30, 2011: 51 cents per mile
- July 1, 2011 through December 31, 2011: 55.5 cents per mile.
Side Note:
Certain miscellaneous deductions are not subject to the 2% of AGI floor, such as gambling losses. Gambling losses are deductible up to the amount of gambling winnings.
Next:
Car Expenses: What is the Actual Expense Method? What Deductible Car Expenses
Related Links
- Turning Commuting Mileage into Deductible Business Expense
- Qualifying for the Hybrid Credit
- Phaseout of Hybrid Credit
- Alternative Minimum Tax (AMT)
- Audit Proofing Your Car Deduction
- Tracking Business Miles
- Estimates of Car and Truck Expenses
- Electric Cars
- Annual Depreciation Limits for Electric Cars
- Should You Sell or Trade in Your Vehicle?
- Nontaxable Exchange (trade-in old vehicle)
- Taxable Sale of Car
- Computing Basis of New Vehicle When Trading In Old Vehicle
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