J.K. Lasser's 1001 Deductions and Tax Breaks 2013: Your Complete Guide to Everything Deductible

CHAPTER 7

Your Car

Alert

At the time this book was printed, Congress had not extended numerous breaks for 2012 that had expired at the end of 2011. Check the online supplement in February 2013 at www.jklasser.com or www.barbaraweltman.com to see whether these breaks apply for 2012 returns.

Americans love their cars. According to the U.S. Census Bureau there are more than 244.2 million registered cars on the road in this country today. Cars can be expensive to buy or lease and to operate, especially with today's high fuel prices. But the tax law provides some relief for your car use by way of tax write-offs.

This chapter explains:

• Business use of your personal car
• Employer-provided car
• Vehicle registration fees
• Car accidents and other car-related problems
• Donating your car
• Credit for plug-in electric drive vehicles
• Credit for low-speed electric vehicles
• Credit for plug-in vehicle conversions
• “Cash for Clunkers” incentive

Deducting the use of your car for medical-related travel is discussed in Chapter 2. Deducting the use of your car for a job-related move is discussed in Chapter 4. Deducting the use of your car when working as a volunteer for charity is discussed in Chapter 6.

For more information, see IRS Publication 463, Travel, Entertainment, Gifts, and Car Expenses; IRS Publication 535, Business Expenses; IRS Publication 547, Casualties, Disasters, and Thefts (Business and Nonbusiness); and IRS Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use ...