topic I took out a loan for $600 little did I know it was basically a payday loan so my $600 turned into $2400, can I claim it as it was for a down-payment of my car in Retirement tax questions

I took out a loan for $600 little did I know it was basically a payday loan so my $600 turned into $2400, can I claim it as it was for a down-payment of my car

TIKACYMONE — Thu, 24 Dec 2020 20:55:02 GMT

$209 was deducted each month although I didn't use the money until September 2020 when I paid $600 for my 2015 Mitsubishi Outlander Sport

Re: I took out a loan for $600 little did I know it was basically a payday loan so my $600 turned into $2400, can I claim it as it was for a down-payment of my car

VolvoGirl — Thu, 24 Dec 2020 20:58:01 GMT

Sorry Loans, interest and down payments are not deductible.

Re: I took out a loan for $600 little did I know it was basically a payday loan so my $600 turned into $2400, can I claim it as it was for a down-payment of my car

TIKACYMONE — Thu, 24 Dec 2020 21:18:31 GMT

Even though I drive Lyft and DoorDash? My primary income?

Re: I took out a loan for $600 little did I know it was basically a payday loan so my $600 turned into $2400, can I claim it as it was for a down-payment of my car

fanfare — Thu, 24 Dec 2020 23:54:55 GMT

if you want to take your vehicle as a business expense, you have to pro-rate it and keep very exact written daily mileage records.

Re: I took out a loan for $600 little did I know it was basically a payday loan so my $600 turned into $2400, can I claim it as it was for a down-payment of my car

Critter-3 — Fri, 25 Dec 2020 00:55:15 GMT

If you are new to being self employed, are not incorporated or in a partnership and are acting as your own bookkeeper and tax preparer you need to get educated ....

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-NEC for some of your income but you need to report all your income. So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf

Publication 463 Travel, Gift, and Car Expenses

Https://www.irs.gov/pub/irs-pdf/p463.pdf

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

Publication 946 … Depreciation

https://www.irs.gov/pub/irs-pdf/p946.pdf

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Self Employed return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed ....
http://quickbooks.intuit.com/self-employed

How to report Lyft and Uber income

https://ttlc.intuit.com/community/uber-or-lyft/help/where-do-i-enter-my-lyft-uber-income/00/26804

Tax Tips for Uber, Lyft, Sidecar and other Car Sharing Drivers FAQ

https://turbotax.intuit.com/tax-tips/self-employment-taxes/tax-tips-for-uber-lyft-sidecar-and-other-...

How to import from Lyft

https://ttlc.intuit.com/community/entering-importing/help/how-do-i-import-my-tax-information-from-ly...

How to enter Lyft tax info

https://ttlc.intuit.com/community/self-employed/help/how-do-i-enter-my-lyft-tax-information/01/27139

How to get the Lyft discount

https://ttlc.intuit.com/community/account-management/help/why-isn-t-my-lyft-discount-being-applied-t...

UBER

What do I need from Uber

https://ttlc.intuit.com/community/uber-or-lyft/help/what-do-i-need-from-uber-to-file-my-taxes/00/271...

How to get the Uber Discount

https://ttlc.intuit.com/community/charges-and-fees/help/how-can-i-apply-my-uber-discount-to-my-turbo...

How to import from Uber

https://ttlc.intuit.com/community/entering-importing/help/how-do-i-import-my-income-information-from...

And

https://ttlc.intuit.com/community/entering-importing/help/how-does-importing-from-uber-work/00/27149

How to enter expenses from the Uber Summary

https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-my-expenses-from-my-uber-ta...

Re: I took out a loan for $600 little did I know it was basically a payday loan so my $600 turned into $2400, can I claim it as it was for a down-payment of my car

Opus 17 — Sat, 26 Dec 2020 22:42:30 GMT

If you use your vehicle in business, you can deduct your vehicle expenses as business expenses. That can include interest on a loan used to buy a vehicle used in business.

However, you can use either the standard mileage rate method, or the actual expense method, but not both. If you use the actual expense method in the first year you use the vehicle in business, you must continue to use the exact method every year after that.

The point is that the standard mileage method is easier, requires less proof, and usually returns a larger deduction. With a large interest expense this year, the actual expense method might return a larger deduction this year, but then you must use the actual expense method every year after, even if it is not more favorable in the future.

Using the standard mileage method, you must keep track of business miles using an app, diary or logbook that includes the date, miles driven, and business purpose. The deduction is about 58 cents per mile (it changes every year, turbotax will have the right figure) and includes all car expenses -- fuel, maintenance, repairs, insurance, and wear and tear.

Using the actual expense method, you must track all your miles driven for work, as well as your personal miles, and you must track all your vehicle expenses, including fuel, repairs, maintenance, insurance, and interest on your loan. Then, you deduct the percentage of expenses equal to the percentage of your work miles. (If you drove 10,000 personal miles and 15,000 work miles, for example, then since 60% of your total miles were for work, you deduct 60% of your total expense as a business expense.)

You can only list the interest as a specific expense if you use the actual expense method, and if you use the actual expense method in the first year you use the car for business, then you must use the actual expense method every year after that as well. And while the actual expense method might get you a larger deduction this year, it will probably give you a smaller deduction over time.

This is a business expense on schedule C that you deduct against your business income in order to determine your net profit or taxable income.