Technical topics regarding tax preparation.
5-Dec-2021 10:23am
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A landlord blew out a tire on his way to collect rent, he spent $250 fix the tire. Is a deductible expense on his Schedule E? If so, on what category?
The IRS Publication 527 lists the following expenses:
• Advertising.
• Auto and travel expenses.
• Cleaning and maintenance.
• Commissions.
• Depreciation.
• Insurance.
• Interest (other).
• Legal and other professional fees.
• Local transportation expenses.
• Management fees.
• Mortgage interest paid to banks, etc.
• Points.
• Rental payments.
• Repairs.
• Taxes.
• Utilities
Please consider visiting this post where my question at the end has not been answered yet:
viewtopic.php?f=8&t=12065, thanks!
5-Dec-2021 10:35am
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Two ways to deduct auto expenses. Mileage rate or actual expenses. Both require logs to support the deduction.
Mileage is easy, # miles for business purposes times the rate. If thats the case, no direct deduction for the blown tire.
Actual expenses would include all costs of operation, interest on a loan, and depreciation. That cost is then allocated by the % of business use to the total use of the vehicle. Again, no direct write off of the blown tire.
5-Dec-2021 6:43pm
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Do note that the standard mileage rate is sometimes referred to as a
flat rate.
5-Dec-2021 7:25pm
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Nilodop wrote:Do note that the standard mileage rate is sometimes referred to as a
flat rate.
I'm getting
tired of your puns.
5-Dec-2021 7:43pm
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Not bad. But don't let it inflate your ego.
5-Dec-2021 8:30pm
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At this point we've exceeded the maximum PSI (puns per square inch) and knocked the entire thread out of balance.
5-Dec-2021 8:34pm
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5-Dec-2021 9:47pm
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I'm all out of puns for now but I hope you enjoy the holidays and have a Goodyear.
6-Dec-2021 9:59am
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AlexCPA wrote:I'm all out of puns for now but I hope you enjoy the holidays and have a Goodyear.
Nicely done - made me laugh out loud !!!
6-Dec-2021 10:21am
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Great levity. Who says we're boring people?
6-Dec-2021 11:01am
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6-Dec-2021 11:29am
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Have you discussed OIH with your client? Depending on the outcome of that discussion, he may feel a bit deflated.
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