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12:18

[Comment From misled]
I bought a car on president's day thinking I would be able to take the tax credit from the stimulus plan, little did I know that it wouldn't take effect until the next day. I was misled by the car salesman (shocker there, I know I should have known better). I feel like a lot of car buyers on this day did not know this information, and I dont feel it was widely reported. Do us duped buyers have any recourse? I realize it's partly my fault but I know a lot of people who feel misled on this. Anyway, what document does the government look at when determining the date/eligibility? I'm hoping to work with the car dealer to modify the contract, as I didn't actually get the car until a few days later.

12:19

[Comment From Rob]
I use my truck to snowplow but do not have a business.My employer pays me an houly rate above normal when I use my equipment.How do I go about deductions for regular expenses(Fuel,upkeep,etc.) and large expenditures(plow,sander,etc.) thanks ,Rob

1:01

Buz Aaron - Hi Rob:

If you are paying these additional expenses to run your snowplow and they are not reimbursed by your employer, they are considered unreimbursed business expenses and would go on schedule A of your form 1040 as miscellaneous itemized deductions. The big ticket items would have to be depreciated, but the depreciation would also be included as a miscellaneous itemized deduction.

1:05	Buz Aaron - Hello Misled: I'm not sure what you mean. The new stimulus bill has a provision to allow you to deduct the sales tax you paid on your car. Did you buy a hybrid? Depending on the hybrid, there may be a credit still available for 2009.

1:13	Buz Aaron - Hello: I'm Buz and i'll be here for the next 48 minutes or so to answer your tax questions. Don't be shy. Remember, the only dumb question is the one you don't ask.

1:21	[Comment From Nick] Am I able to deduct medical bills ? Does the total have to be a certain percentage of income ? For example, I make 70k a year and spent about 2,000 on medical last year.

1:24

Buz Aaron - Yes. In order to be able to deduct medical expenses, they have to exceed 7-1/2% of your adjusted gross income. Then you only get the piece above that. in addition, you have to be able to itemize deductions, so you need to check whether your total itemized deductions is greater than your standard deduction ($5450 for a single person in 2008)

1:24

[Comment From Aldo]
I've been filing the Sched C for a few years for my part time work as a musician. The last two years, my expenses have exceeded my income and I've reported a loss. Can I just stop cold with the filing of the Sched C and consider this a hobby from now on? It's a lot of work keeping track of expenses/income and I don't see the point in continuing to file the Sched C as a loss year after year.

1:27

Buz Aaron - Hi Aldo:

You would still need to report all of the income you earn as a musician. If you are truly trying to make a profit, you should still report all of your expenses. If you have net losses in 2 of 5 years, the IRS can classify your activity as a hobby, but you don't have to give them that up front. It is a rebuttable presumption.

1:27	[Comment From Geoff] I leased a new vehicle this week. Do the sales tax deductions apply to leases?

1:28	Buz Aaron - Hi Geoff: I don't think so. The text refers to "purchases".

1:29

[Comment From Andy]
Thanks for taking my question Buz. My fiance and I are in the process of buying home. We aren’t getting married until next year, so we will both be “single” for our 2009 returns. What is the best approach for us to get the most out the stimulus plan tax credit for new home purchases? Sounds too good to be true that we would both be able to claim the full amount. Also, is there any kind of similar credit offered through the state?

1:32

Buz Aaron - Hi Andy:

Congratulations! And good question. I'm not sure i have the answer for you now, but here's my initial thought. If you buy the house jointly (and you are both first time homebuyers), then you may each be able to claim the credit for the 1/2 house you bought. I will have to see if i can find some detail on this one. And, no, there is no similar state provision.

1:32	[Comment From confused] My husband makes an additional $2500 per year providing computer support to a local business. He has never received any tax paperwork from this company, so in years past we have claimed the proceeds as additional income. Is there a better way to claim this income for 2009?

1:34

Buz Aaron - Hi Confused:

The company should have issued him a form 1099. However, you are still doing the right thing claiming the income. Your husband should file a schedule C with your return and should deduct his expenses associated with that income. For instance, he could deduct his mileage from traveling to and from that business.

1:34	[Comment From otter617] If I bought 100 shares of XYZ in January for $30, and another 100 shares in February for $20, and then I sell 100 shares for $25 in march - Is it a capital gain or loss, or breakeven? Does FIFO apply?

1:36	Buz Aaron - Hello Otter: The default assumption is to use FIFO - in which case you would have a short term capital loss of $5 per share. If you do not want FIFO, you have to specifically identify the lot you want to sell at the time you sell.

1:37	[Comment From Dr. Jeff Engel] What kind of deduction can I get for a deizelboot?

1:37	Buz Aaron - OK, Dr. Jeff, you piqued my curiosity - what is a diezelboot?

1:38	[Comment From paul] for self employed people, what is the best method of deducting the highest amount of retirement money, IRA, SEP, etc?

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