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re: Few questions regarding mild investing and tax write offs

Posted on 2/19/15 at 3:55 pm to
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37174 posts
Posted on 2/19/15 at 3:55 pm to
quote:

So my first question is, should I figure out what Id need to take out every pay period to max out a roth every year? Or should I put more into my 401k since they allow up to 10%?


I would only put enough in the 401K to get the full match, then move to Roth.

quote:

This is a sales mngmt position so I will have a small vehicle allowance (400/mo) but will not get any mileage reimbursement. So since I will be driving a vehicle to sales appts can I claim the mileage on my taxes? Or is that not allowed now bc I get the vehicle allowance?


Depends on how the allowance is structured. If the allowance is taxed, then, you can deduct mileage. If the allowance is not taxed, then, you can only deduct expenses over the allowance. If you get a choice, you want the allowance not taxed, as any deductions would be subject to 1) itemizing and 2) 2 percent of AGI.

quote:

Also if I have a car note above the 400, can I claim the extra amount?


Your car note is made up of interest and principal. The interest part may be deductible, to the extent you use the car for business (so not 100 percent), again, it's subject to itemized deductions and 2 percent rule, and, the amount you can claim will depend on whether the allowance is taxed or not taxed.
Posted by JOHNN
Prairieville
Member since Nov 2008
4363 posts
Posted on 2/19/15 at 4:18 pm to
Pretty sure that the vehicle allowance would be taxed.
Posted by JOHNN
Prairieville
Member since Nov 2008
4363 posts
Posted on 2/20/15 at 10:35 am to
quote:

Depends on how the allowance is structured. If the allowance is taxed, then, you can deduct mileage. If the allowance is not taxed, then, you can only deduct expenses over the allowance. If you get a choice, you want the allowance not taxed, as any deductions would be subject to 1) itemizing and 2) 2 percent of AGI.


What is AGI?
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