Posted by Anonymous on 9/22/05 1:47pm
Msg #66746

Odd question, here it goes...

I planning on claiming my car expenses/milage on my 1040-Sch C -(First year in business)
I had an accident the other day (minor). The insurance will cover everything except a $500 deductible. Can I use this amount and claim it as a car expense on my 1040- sch C?

The car usage for this business, it's 100% but I do this part time... (for now) the rest of the time is used for personal stuff. Any suggestions??

Sounds confusing... I am still under the effects of the car impact, my head is blank!


thanks

Reply by Art_MD on 9/22/05 2:00pm
Msg #66747

You may not deduct the $500. If you use the std mileage deduction, that covers everything to do with the car.
To be able to deduct the $500, you would have to track all expenses, depretiation etc.

Art

Reply by thnotary_NY on 9/23/05 8:28am
Msg #66878

Don't confuse things. Keep track of the mileage on signings. The car usage for business can not be 100% if it's the only car and also has personal use.
Consult IRS form 4684 Section A for Personal Use Property Deduction limits. The deduction of the $500 deductible might be possible if you qualify. Consult your tax person.