HH and new car

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Hi

I am new to HH hopefully getting an official offer tomorrow. My area will be 30 min from home, I have a 2005 Prius but have been thinking about getting a new car (used) can you write off car payments if it is used only for work for full time HH job?

Thanks

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Specializes in Correctional, QA, Geriatrics.

I am not a tax expert but I believe all you can write off regarding a car used for work only is the federal mileage allowance. If the car was registered to a business and not an individual then you probably could deduct part if not all of the purchase price as a capital expense. Capital expenses are generally pro rated over a five year time span.

However to be absolutely clear you should consult a tax professional.

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When I read about this one time it stated that you have to keep scrupulous mileage records to be able to prove that the car was only used for business. Too much trouble for most people plus too hard to keep a car for only that use.

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This can become quite the quagmire (I know from experience) and a red flag for the IRS. Start with these two links, and if you still have questions, call an accountant. They are worth every penny you pay them, where business expense questions are concerned:

Tax Topics - Topic 510 Business Use of Car

Publication 463 (2009), Travel, Entertainment, Gift, and Car Expenses

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You should also find out if your employer offers mileage reimbursement.

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