[net.taxes] Question on Car Depreciation for Salesmen

pvlm@hou2f.UUCP (P.LAMASTER) (10/04/84)

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  I've heard some information about being able to depreciate a car
over a three year period if the owner is in a position which integrally
uses the car.  I've also heard that the limit for such depreciation
was just dropped to $15,000.  Questions:  1) What are the necessary
criterion for a person to qualify for such a depreciation?  2) Where
do I look for details/hangups of the system?

  Pete LaMaster  ihnp4!hou2f!pvlm  until 10/9  (201)949-5009

hrs@houxb.UUCP (H.SILBIGER) (10/04/84)

A salesperson can deduct all expenses of a car (gas, mainetnance, insurance,
depriciation) for the proportion taht the car is used for business.
Of course, the car must be essential to the sales work, i.e. a telephone
salesperson cannot deduct their car.
Any payments by the employer for car expenses have tobe reported,
even if the employer does not report them as employees income
to the IRS, which he doesnt have toif they are < .205.
The car has to be depreciated in three years from the date
of purchase. so if you have already had the car for longer than that,
all you can use is the expenses.