Someone please correct me if im wrong anywhere in this example:

i earn 60,000 at work per year. My online business earns 0 this year, and 10,000 next year. Therefore 2008 total income = 60k, and 2009 = 70,000.
Half way through 2008, i decide to buy a yukon/tahoe Hybrid for ,000, but decide to finance, so the payments from june thru december add up to ,000. However, i can still use the section 179 deduction of 25,000 and the depreciation, therefore, a dedcution of about ,000? (thats 25 + 7k) (60-25 = 35/5 yrs = 7k). And i am in the 25% tax bracket, thus i would recieve (.25*32k) k back?

in june 2009 i decide to sell car, but i only get 45k for it, do i have to show that as an income?
Or scenerio 2, i trade it in for 45, and get another 60k car. Can i use section 179 and depreciaion again on whole value of the car, or just on the 15k differance?

and final question, does all this work, if it was a lease instead?

My husband receives a car allowance with each pay period. He also receives reimbursement for gas and maintenance. But nothing for car insurance. Now it seems the car allowance is taxable income on our W-2 but our H& R Block Tax Provider says it is not being taxed. But when I look at his W2 it shows up on line 1. I’m a little confused??? Can we deduct any of the car allowance off? How do we know if we are getting the full amount in reimbursement compared to the .48 mile reimbursement. Is there a standard way to compare?
Also, is there a depreciation deduction if he is putting a lot of miles on his car for business.
Yes, he keeps a mileage log and records of gas and maintenance reimbursement.

Okay. So I don’t believe that taxes should be raised for anybody. I actually believe that we should switch to a consumption tax. However, this notion that Democrats want to raise taxes on the rich is unfair is starting to bother me a little.

Our tax system allows for multiple deductions based on the depreciation of assets, interest payments on real property and charitable donations, etc. Just owning a house gives you a great deal of deductions.

Is it not logical to think that a person with the means to reduce their taxable income through deductions can potentially pay a smaller percentage of taxes in relation to that income?

Example: If my tax liability is ,000.00 and I have a total of ,000 in deductions, which lowers my liability and my amount due is now ,000. My ability to invest in businesses, buy property and other assets, allows me to use my capital to lower my liability. (Okay, these numbers don’t make a whole lot of since. I’m just trying to prove a point)

What are your thoughts? I’m not an economist so your opinions would be pretty cool.

I’m just getting started up with a business, but I haven’t made enough money this year to have to pay taxes. But, I’ve invested a lot of money and I want to be able to get compensation for the investments that I’ve made later. So, the question is, do I still have to fill out income information even though I haven’t made enough money to pay taxes?
And, also, what will I be able to get deductions for later? Do I have to try to stuff everything into the "Assets" category for depreciation, or will all my investments automatically carry over to next year?

Dr. Mcfee formed a medical corporation that had the following business expenses for the year:

Wages-,500
Utilities-,840
Interest-,000
Property taxes-49.00
Depreciation-,916.50
Other deductions- 00
Together they all equal out to be ,505.50

The corporations gross income for the year was 4,850. What is the federal corporate income tax for the year?

A. ,249.50
B. ,336.13
C. ,137.25
D. Not given.

….are they talking about Income BEFORE deductions/taxes paid…

or are they talking about the bottom line on your 1040!????

say for example you have 0,000 in income on a self employment business…..but have 0,000 in expenses….is your "income" that they are talking about, the 0,000…or ,000????????

I have read that those with "incomes" over 0,000 are more likely to be audited….but what income are they talking about….gross…or net….after all expenses/deductions, etc??
I believe (I don’t have it here with me) but our AGI on our 1040 after everything was about ,000.

We have self employment, but we also both have full time jobs. Our losses on our self employment each year is almost always because of depreciation! if we didn’t have to add that in, we’d make a little!!!

Christina makes quilts for her home business
she uses 10% of the total square footage of their home
expenses related to operating the entire home include utilities 2k; insurance, 500; depreciation attributable solely to the home office is 800.

christina computes her deduction relating to the use of car using actual expenses gas and oil 900; insurance 300; and repairs 100. The car is fully depreciated. Her daily diary revealed that, for the year, she had driven a total 20000 miles, including the following trips

Home to sales outlets and return…….10k
Between sales outlets……………………2k
Misc. Personal Trips……………………..8k

I dont understand this, please help–
thanks!
Thanks Rudolph, but that didnt help me

I’m really discombobulated, I dont even know how to begin the problem.

I’m the sole shareholder of a corporation which operates a travel agency for business travelers. I want to donate computer equipment to a qualified charitable organization. I bought the equipment 2 years ago for ,000 and expensed the entire amount under section 179. The market value of the computers is ,000. If my corporation’s taxable income is sufficient for it to deduct up to ,000 in charitable corporations, how much tax deduction would I received for this donation? I know that IRS publication 544 gives the method for depreciation recapture for section 1245 assets, but the wording is kind of confusing. Can anyone help??? Thanks!!

My husband uses his truck 99% for business. He drives all day long. The previous 2 years I used the mileage deduction and figured his actual business mileage to be deducted.The company pays for his fuel. This year, his company is doing something funky with reporting that cost of fuel. If they are paying for his fuel, isn’t he still able to use the mileage deduction? Mileage is not the same as doing the actual expense deduction. Mileage is "wear and tear" and "depreciation" on your vehicle. No one I work with knows. People need to understand taxes better.

1) I bought a new car in 06 for personal use. Four months later (still in 06) I was involved in a wreck (not at fault).
Can I deduct…
A) The sales tax and other miscellaneous taxes on my car when I purchased it? (Conflicting info..one person says yes, another says no because it isn’t for business only)
B) Out-of-pocket expenses for rental fees? Or taxes only?
C) Standard depreciation?
D) Extra depreciation due to the wreck?
E) Deductible paid to body shop but not re-imbursement from insurance company not received by the end of 06.

2) Student loans. I was not a student in 2006, but was making payments on my student loans.
Can I claim..
A) Interest paid on student loans?
B) Interest paid but not claimed from previous tax years? How do I claim this if I can?
C) Hope credit or Lifetime Learning Credit?