Auto Allowance

I received a $500 per month auto allowance. It showed up on my W2 without anything with held making my taxable income higher. Can I deduct mileage or depreciate the vehicle?

Auto Reimbursement

by Kathleen
( Hollis, Maine)

My company requires all employee's to have reliable transportation to drive clients to and from community events, medical appointments, religious functions and any other event that might come up. they do provide reimbursement for mileage if wanted. Can I deduct part of the operating costs for my car. I live in Maine.

Car Loan Interest

I bought a new 2010 Toyota last year and understand I can deduct the sales tax as part of the general sales tax deduction; however, is there any way I can also deduct all/some of the interest I've paid associated with the car loan I set up to purchase the vehicle??
Thanks in advance for the assistance!

Hi,

Thank you for your question.

You can only deduct the interest if you use the vehicle for business.

Car Loan Interest

I bought a new 2010 Toyota last year and understand I can deduct the sales tax as part of the general sales tax deduction; however, is there any way I can also deduct all/some of the interest I've paid associated with the car load I set up to purchase the vehicle??
Thanks in advance for the assistance!

New Car Sales Tax Credit

My car was totaled in 2009 and when I bought a new car, my insurance company reimbursed me for some of the sales tax (not all). Can I still claim the sales tax on my tax return this year?

Hello,

Thanks for your question.

Any amount of sales tax paid out of pocket by you (not reimbursed) should be deductible on your 2009 tax return.

Vehicle Taxable Benefit

by Alexina McDonald
(Oakville, Canada)

My employer is selling me a car for $0 but is adding $5000 to my income as a tavable benefit. Will I have to pay income tax and sales tax on the vehicle?