Automobile Tax Rules ON DEMAND

Overview

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 informative course reviews automobile tax rules including apportionment of personal and business use, the actual cost method, the standard mileage method, and expensing. Moreover, this presentation will give you the information you need to know regarding topics such as the benefits and costs of leasing versus owning, and working condition fringe benefits.

Highlights

Automobile Apportionment. Actual Cost Method. Expensing. Predominate Business Use Rule. Auto Leasing. Standard Mileage Method. Working Condition Fringe Benefits.

Prerequisites

None.

Designed For

CPAs, financial professionals, enrolled agents and attorneys.

Objectives

Recognize tax vehicle depreciation (Section 168) and expensing (Section 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.

Preparation

None.

Notice

None.