Vehicle Insurance Claim
 

Hi Tom-

I have a 1million dollar policy on my vehicle for the purpose of transporting the DCKs for Field Trips.

I am doing my own taxes this year and am using MMK for my accounting and tracking of expenses, etc.

I pay $310.00 each month for my auto insurance which is not 100% business. I would say its about 60% business use.

when I entered my vehicle insurance under actual vehicle expense, it is only allowing me to claim about 20% of the payments made.

Does this sound correct? I am a little concerned, because I am paying almost triple in insurance to obtain this policy, but only going to be able to claim 20%???

Thanks so much for your help,

daycare

car insurance
 

MM is calculating your actual use % of car insurance based on the number of business miles you drove divided by the total number of miles you drove - 20%.

You can deduct 100% of the cost of any additional insurance you purchased for your business.

Originally Posted by TomCopeland:
MM is calculating your actual use % of car insurance based on the number of business miles you drove divided by the total number of miles you drove - 20%.

You can deduct 100% of the cost of any additional insurance you purchased for your business.

I guess what I dont understand, is how MMK is coming up with that formula of 20%. When I go to my miles driven for the DC vs. personal use, it is about 60% business, not 20%. I do have a 3rd vehicle that I use on a daily basis.

I only use my DC vehicle when we go on family vacations or I have to transport several people, which is almost never. I never use it on a daily basis for personal usage.

I am really lost here....

Originally Posted by daycare:
I guess what I dont understand, is how MMK is coming up with that formula of 20%. When I go to my miles driven for the DC vs. personal use, it is about 60% business, not 20%. I do have a 3rd vehicle that I use on a daily basis.

I only use my DC vehicle when we go on family vacations or I have to transport several people, which is almost never. I never use it on a daily basis for personal usage.

I am really lost here....

I don't know what MM is doing in your situation. It should be dividing your business miles by total miles driven. Check to see that you are entering the proper miles for the particular vehicle.