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Re: Lustorlove
would you mind sending this to me in an email and what about purchasing the vehicle is best to be in my name as dba?

posted by Lanetay on May 10, 2007 at 6:29 AM | link to this | reply

Lustorlove

The answert to your question is that you can use a car in your business. There are two ways of doing this. You can use the mileage method, or actual expenses. If you use the mileage method in the first year, you will can switch back and forth from mileage to actual expenses. If you use actual expenses in the first year, then you must use actula expenses for the vehicle as long as you use it form business.

Depreciation for the vehicle, if the vehicle is under 6,000 lbs GVW (gross vehicle weight), is limited to the luxury automobile limits. The way the deduction works is you make an allocation of business mileage to total mileage. This ratio is then appile to the total expenses generated by using the vehicle. If you are using the mileage method, then all you do is multiply the business mileage by 48.5 cents for 2007.

 

Thanks for asking,

Ron aka Taxguy

posted by taxguy on May 10, 2007 at 5:33 AM | link to this | reply

Tax Guy, thanks for posting this poem

posted by Straightforward on May 9, 2007 at 6:38 PM | link to this | reply

tax guy
I have a question if I have a business license and need a car to carry out my business how much can I declare as a write off and do I get a break buying the car?

posted by Lanetay on May 9, 2007 at 6:33 PM | link to this | reply

Thanks, Kabu
It's great to be back. I have missed all of my blogit friends. How's your Python?

posted by taxguy on May 8, 2007 at 7:36 PM | link to this | reply

taxguy, love, I've missed your witty ditty each day
I actually thought that it was just too difficult and you had left us so I stopped looking for you. Welcome back to those that care for you.

posted by Kabu on May 8, 2007 at 7:34 PM | link to this | reply