| Show I i Income Tax r Questions From Motorists l Ans I IBy By AAA A A A Of f Income 1 tax deductions for mo mo- are arc a frequent inquiry at Utah Motorist association AAA in J spite of the time fact that deadline dedline de for filing returns is still some weeks in jim the future Lyle D D. Sarvis secre seere- secretary tary of the local AAA club advises advise that certain deductions are allow allow- allowable allowable able for business use only while others be made by any motor motor- motorist motorist motorist using a car for either business or pleasure To TI assist Utah people in making out returns Mr Sarvis Sands gives the following information in cooperation cooperation tion with and income state federal I tax ta officials official When a car is used for 11 business and pleasure such usage is is j II m r. r rated ra tt according to mileage of business busine s use IIse and all expenses while the thc car is being heing used for busi bust business ness umess are deductible inc de de- depreciation depredation predation repairs insurance and These deductions are not allowed o for pleasure pleas use Gasoline G taxes are not deduc deduc- deductions deduction tion in the time price of the gasoline state and federal tax author author- exempt fees paid for registration registration tion and ami personal property tax on oia the time car Utah tax on a new car ear is deductible according to officials but hut those claiming this exemption must have an aim actual record of aks tales taxes paid Federal excise tax taK on oh new cars is not a deduction in any aay case ca t Loss through theft or actual casualty loss los uncovered by insurance ance may bo lC deducted provided that the time accident did not occur through negligence or carelessness of the time taxpayer Collision damage to the time motorists motorist's car in an accident is deductible under the same pro pro- provision ision vision as above Insurance claims paid against a II loss and salvage value must be subtracted from Crom to to- to total loss tal-loss tal loss I Actual car operation cost must be e supplied in lit filing Federal re re- turns urns In absence of or exact records which are arc preferred the state al at- at lows SC per mile as approximating alt all costs for business use Including depreciation on repairs and Insurances Insurances- U if the hc taxpayer can ean lIon by eUaIl records r cords cords' that business car exceeds exceed ic Sc a mite milt he is allowed all wed deduction for tor the exact mount I IA operation and depreciation costs of trucks owned by the taxpayer t are arc deductible as ail business expenditures Fines paid for or overtime parking par speeding etc et are lire considered per personal personal personal expenses and are not deduc deduc- deductions A doctors doctor's bill or uninsured damage suit arising out of an auto automobile mobile immobile accident is not deductible Purchase price of a car is not not- n t- t allowed Cut but interest on money bor borrowed borrowed borrowed rowed for the purchase o of a car is i allowed as a deduction Financing charges on automobiles purchased which cover interest on the on-the the loan when specifically set forth in the contract but not the time amount cov coy covering covering ering premium on insurance to pro protect time the company's interest may be deducted Loss sustained when a acar acar acar car used for business is sold sol outright out out- outright right ri ht at a less than depreciated ed value may be deducted Loss sustained where an automobile used for business is traded in for fora a new car cannot be deducted de but such loss can be considered as part of or the time cost when computing the de depreciation de- de depreciation predation on the time new car Depre Depre- Depreciation Depreciation Depreciation is figured usually at 20 per annum Mileage allowance re received re re- received by an employee for automo automo- automobile automobile automobile bile operation is not deductible un un- unless unless less such allowance is declared part I. I of income Time The Utah State Tax Ta Commission Income Tax Bureau asked Utah Motorists association to make it clear that car insurance is NOT deductible except for that portion pro rated for business use of the car Mr Sarvis recommends that as far as possible actual records of oft depreciation and car costs be kept for use in filing returns and that returns return be filed as early as possible possible- |
