View Single Post
  #11  
Old 03-27-2013, 02:52 PM
rlitman rlitman is online now
LawnSite Bronze Member
 
Join Date: Sep 2009
Location: Long Island
Posts: 1,099
Quote:
Originally Posted by mkarps View Post
So correct me if I'm wrong, but just thinking about this. I've deducted all the fuel as an expense. So buy filling this out and getting back the off road use part really I am just creating more income then to tax....Seems like a lot of extra work for nothing.
This is incorrect. You are confusing a "tax deduction" from a "tax credit".

A credit is money in your pocket. Whatever the credit is, that's what your taxes are reduced by.
A deduction reduces your taxable income by that amount, but your taxes are then only reduced by that deduction times your tax rate. So you only get back a small fraction of the deduction.

In this case, getting the credit on off-road fuel use (whether it is for power tools, or vehicles not driven on public highways, or generators, or whatever) will always get you more money back.
Reply With Quote
 
Page generated in 0.03334 seconds with 7 queries