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Old 10-15-2010, 04:15 PM
 
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Auto Expense question

Why would my vehicle expense deduction be zero, if I have and inputted all of the expenses I had for last year?



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Old 10-20-2010, 08:41 PM
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You need to show the percentage of vehicle usage by inputting the business miles driven as well as the total miles driven for the year. Thus, the tax software program will be able to calculate the % of business usage, and will apply this percentage to the actual auto expenses.

Once you have done this, you will be able to choose the greater of actual auto expenses (multiplied by business usage) versus the auto expenses using the business mileage method.

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