You Own A Car? Try The Vehicle Tax Deduction
We love our vehicles like we love our pets. We treat them with
care ands howler love. So we do incur some expenses on their
maintenance and so why not use them as tax deductible expense?
A vehicle with a gasoline engine and an electric motor can get
you a deductible expense of unto $2000 while an electric vehicle
can get you something like $4000.
The followingfules are considered as clean and green: natural
gas, LNG, LPG, Hydrogen or any other fuel that is at least 85%
alcohol or less. You must remember that even though
gasoline/electric hybrids use an electric motor, they are not
eligible for electric vehicle tax credits.
Now what if your vehicle runs on dual types of fuel? In that
case the cost you incur to convert the car into a clean-fuel
user is up for deduction, subject to the stated limits.
There are other requirements as well. The first rule is to buy
and drive it within the USA only. Should be a four wheel drive
and no alterations have to be made to the vehicles.
Get prepared for the donations side of the car. Several ads
claim to provide that crucial tax break. Remember, you cannot
claim a dime more than what a car can actually cost at the
current value.
Now to the charity side of it for you to get the break, it is
crucial how they use it. Also the organization you have donated
to must be recognized by the tax agencies.
Let's say the charity you gave your vehicle to sold it off at a
lower price than your stated value. Then the amount that you get
a deduction for is the lower amount. However, if the value is
greater than what you stated, you just don't have to worry...
So if you are planning to give a car to charity, go ahead. Some
one will benefit and the good part is so will you. The tax
collectors will make sure of that. And you can have the proud
feeling of having donated the car for a noble cause. Our
reverend pope will also be a happy man. And so will the people
athlete department.