Car Deduction on 2010 1040 Form
(Austin, TX, USA)
I began a new career as an insurance appraiser last year. As a result, my self employment
income was less than $40 with 2 listed dependents plus myself as a head of household.
My question is this. Do I have to take the car deduction for the 38,000 miles I drove for business? I qualify for the EIC, so if I don't use the deduction, my refund goes up by $3-4k.
My worry is, the IRS will see my car deduction on previous years, and require me to take it in 2010, which would mean I would owe $3k+ with penalties back.
The other easier question, is since my 2000 Mazda Protege is only worth about $2000, is it proper to receive a $10 or $12k deduction
Thank you in advance for your help.
WilliamLooking for a new car?