Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.
Q: If you own a small business and you had several accidents in a car that you used for business, can you deduct repair expenses not covered by insurance as well as car rental?
A: It depends how you treat your business' auto deductions. If you did not elect the standard mileage rate method, you would use the business-use percentage method, which applies to all operating costs. The costs you incurred for repairs and car rental are then calculated at the same percentage you use for your other business auto expenses. Remember to exclude any insurance reimbursements you receive. Other tax issues apply to corporations, their owners and employees.
Q: I am a student and have no income. However, a couple of years ago, I filed an income tax return, then I filed one last year and the year before. So, do I have to file one this year because I filed one last year even though I really have no income?
A: You do not have to file a return if your gross income is less than the minimum filing requirements as outlined on page 8 of the Form 1040 instructions. However, if you are due a refund or are entitled to an earned income credit, you must file a return to claim the refund.
The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.
Members of the Maryland Association of Certified Public Accountants will answer tax questions from readers until April 15 and also offer a Tax Tip of the Week.
To submit a question, call Sundial, The Sun's telephone information service, at (410) 783-1800. In Anne Arundel County call 268-7736, in Harford County 836-5028, and in Carroll 848-0338. Using a touch-tone phone, enter 6225 after the greeting. Push 1 to submit a tax question; state the question in full. Push 2 to hear the tax tip. Selected questions will be answered in the Business section. No questions will be answered by phone. Please leave your name and phone number.