Tax Question - Write offs? ?
We have already completed and filed our taxes. We purchased a truck for me husband to use for work in 2019 but we were under the impression that things could not be written off unless you have a 1099. Is this true? If not can we amend our return to include truck? We took the standard deduction of 25,000 but financed the truck for 75,000
- Beverly SLv 71 month ago
If you aren't self employed then NO you can't.
- Coffee DrinkerLv 71 month ago
If he is self employed as a 1099 contractor or self employed business owner AND the truck is used as part of the business (not just commuting to and from work) then you can deduct EITHER a standard mileage rate or a prorated % of actual costs (based on the % of use that is business related).
If you use the actual cost method you must depreciate the truck, you do not claim $75,000 cost in one year. You also must use the IRS depreciation schedule - not the loan balance or actual value. Be sure to track the book value - and if none of that made any sense then take your paperwork to an accountant.
This goes as an business expense on schedule C or the business's tax return, and is not an itemized deduction. So you'd still take the $24,400 standard deduction on your personal joint as a married couple, but the taxable profit on his business or contractor work would be reduced.
If he works a regular W2 job there is no deduction and I would take a long hard look at whether or not he should stay at a job that requires him to use his own $75,000 truck in order to earn a paycheck. If he just needs to get to work he can drive any car and if he actually uses the truck to do his job the company should be providing the truck or paying him an astronomical salary that makes this arrangement worthwhile.
- SlickterpLv 71 month ago
You cannot write off the cost o the truck anyway. If it is exclusively business use, for YOUR business, you can depreciate it.
- EvaLv 71 month ago
There's much more to writing off business vehicle expenses. If your husband is self-employed, he may be able to write off some of the truck expense, but certainly not 75 k worth. If he purchased it to use for his job that he is paid on a W2, there is no deduction available. Employee business expenses went bye-bye under the new tax bill.
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- Pepper, PhDLv 61 month ago
If your husband did contract labor then he can deduct vehicle expenses and you can do an amended return. You never have to have a 1099 to report income. You are required to report it either way.
You have to file a Schedule C to deduct business/contractor expenses. Be sure to read the instructions carefully on vehicle expenses. There are two ways to deduct the cost of the truck as well as two ways to deduct other vehicle expenses (gas, maintenance, etc).
If he is an employee who gets a W-2, then none of it is deductible.Source(s): Pro tax preparer and business owner
- Wayne ZLv 71 month ago
All deductions for work related expenses for employees (W2) were eliminated in the recent tax law.
If you are just using the vehicle to commute back and forth to work, that was never deductible anyway.
If you are using the truck while at work for items related to your employer, you should be reimbursed by your employer.
- A HunchLv 71 month ago
If your husband owns a business and he filed a Schedule C, the truck would be included on the Schedule C.
If your husband owns a company that doesn't files as a corporation, the truck would need to be owned by the corporation.
- Although, the corporation could provide a car allowance or reimbursement to your husband as an employee of the corporation
- Casey YLv 71 month ago
What is his work? Does he have a company and is he self employed? Or, is he a w2 employee who gets convinced to use his personal vehicle for his employers benefit?
If he gets a W2, you cannot deduct the cost, but there might be some mileage deduction he could theoretically take in the right circumstances.
Start there and ask for clarification if you get stuck.