Vehicle Tax Deductions (eBook)

  • Credits: 2
  • Format: Self-Study eBook
  • Field of Study: Federal Tax Update
  • Author/Speaker: Danny Santucci
Available Formats:
Advanced Preparation: None
Experience Level: Overview
Program Prerequisites: General Understanding Taxes
Course ID: EWTFM-U-01840-21-S | 6233-CE-0555
Published Date: © August 2021

COURSE DESCRIPTION

Operating costs for vehicles used in the course of a taxpayer’s business are deductible. Thus, when taxpayers use their vehicles in their businesses or employment, they can deduct that portion of the cost of operating their vehicle. Such costs that can be deducted are property taxes that are paid on their vehicle if deductions are itemized on Schedule A.

This mini-course reviews apportionment of personal and business use, the actual cost method, and the standard mileage method, and expensing. Moreover, this presentation informs practitioners about topics such as the benefits and costs of leasing versus owning, and working condition fringe benefits.

Topics include:
  • Apportionment of personal & business use
  • Deduction limitations using the actual cost method
  • Predominate business use rule
  • Auto leasing
  • Auto trade-in vs. sale
  • Standard mileage method
  • Employer-provided automobile
  • Nonpersonal use vehicle
  • Reporting of an employer-provided automobile

Learning Objectives:

After reading the course material, you will be able to:

  • Recognize tax vehicle depreciation (§168) and expensing (§179) methods including their requirements and limitations under MACRS and recognize basis, business use, and deduction computations.
  • Specify the predominant business use rule recognizing the result of less than 50% qualified business use, cite the pros and cons of auto leasing, and determine how to estimate monthly lease payments indicating what factors affect payments so clients may recognize leasing costs and know common leasing terms.
  • Identify items included under the standard mileage method listing items that may be separately deducted, determine the taxable fringe benefit value of an employer-provided automobile using the general and special valuation methods and specify several qualified nonpersonal use vehicles stating what reporting standards apply.

Who Should Attend:
  • All Certified Public Accountants (CPAs)
  • Enrolled Agents (EAs)
  • Other Tax Return Preparer (OTRP)

Qualifies and Approved with all State Boards of Accountancy and the following sponsorship’s:
NASBA
IRS
CTEC