I'm a 1099 subcontractor. I damaged a vehicle belonging to the company I work for, cost of repair (new engine) was $3300. I paid for it, but how do I deduct it? Am I allowed to deduct it under regular business expenses? I'm uncertain because of the restriction against deducting "the cost of restoring or replacing property." But it wasn't my business's property, so I can't capitalize it as an asset either. Thanks for any help you can give me!
Do you drive this vehicle for work? If so, you would deduct it as a vehicle expense. When you walk through the vehicle section, you can say that this is a vehicle that you use for business but you do not own it. Then instead of taking the standard mileage you would take the actual expenses and enter the $3,300 as a cost of repair.
If you do not drive it for work and damaged the engine somehow without driving it, then you would be able to enter it as Other Miscellaneous Expenses with a description of what it was for.
Do you drive this vehicle for work? If so, you would deduct it as a vehicle expense. When you walk through the vehicle section, you can say that this is a vehicle that you use for business but you do not own it. Then instead of taking the standard mileage you would take the actual expenses and enter the $3,300 as a cost of repair.
If you do not drive it for work and damaged the engine somehow without driving it, then you would be able to enter it as Other Miscellaneous Expenses with a description of what it was for.