Are car repairs deductable if I am 1099 and can I deduct business expenses for only the months I am a 1099?
Are car repairs deductable if I am 1099 and can I deduct business expenses for only the months I am a 1099?
I have two questions. From February thru July this year I was hired on as a contract worker under 1099 payroll, and then in July I was hired as an employee. My first question is under a 1099 payroll, am I able to deduct car repairs from my taxes? Second question, are eligible business expenses deductible for the entire year or only for the months you are contractor?
Answers:
Judy: Very unlikely you can deduct them. You could only if the car was being driven FOR work, which you don't mention. Driving to work and back home is commuting, and is not deductible.
If you do drive your own car as part of your job, the way to deduct car expenses is different for a contractor (1099) than for an employee (W-2)
2010-11-29 10:35:44
2010-11-29 10:35:44
tro: as a self employed person the use of your vehicle for business would have to be validated by either a log kept of the miles or some sort of accounting for the mileage used for the business apart from the personal use
the mileage rate covers all the expenses, ie gas, oil, repairs, tires, insurance, depreciation etc
not tolls or parking fees
and no, the only deductions would be for the period of time used for the business(the independent contractor status)
2010-11-29 11:21:49
2010-11-29 11:21:49
Chosen Answer
StephenWeinstein: Generally, no, car repairs are not deductible. However, if you used the car for business, then you may be able to deduct some (but not all) of the expenses for the months that you used the car for business purposes (not for the entire year, and not even the full amount of the expenses for the months when you were a contractor, just a fraction based on mileage).
2010-11-29 12:37:01
StephenWeinstein: Generally, no, car repairs are not deductible. However, if you used the car for business, then you may be able to deduct some (but not all) of the expenses for the months that you used the car for business purposes (not for the entire year, and not even the full amount of the expenses for the months when you were a contractor, just a fraction based on mileage).
2010-11-29 12:37:01
Zarg222: if you only used the car for commuting to work, then absolutely no - repairs are never deductible
and companies usually pays their employees the standard IRS mileage rate (which covers gas, oil, repairs and insurance)
2010-11-29 13:51:06
2010-11-29 13:51:06