Single with Two Autos

[qwerty64]

Anyone know if a single person can claim two autos (and the associated expenses for ownership and operation) on Form 22A? I'm worried that a single person listing two auto expenses might be considered abuse of the system.

These are older, high mileage cars (2001 with 150K miles and 1998 with 220K miles). I own them free and clear. I rely heavily on a car to perform my daily work which is why I have two old cars. Its my own personal backup plan to avoid car trouble which would affect my ability to perform my job.

Thanks in advance.

[backtoschool]

There are IRS standards of allowable auto expenses per family size. You will only be able to claim expenses for one auto, but will be able to exempt the value of both autos if you have enough in your exemptions to cover them. The IRS standards assume that you can only drive and use one car at a time if you are single, so you will only have expenses for one car at a time.

[tcreegan]

Hi qwerty,

Same here as backtoschool, we exempted 4 cars but only claimed operating expenses for, as the UST says, "one car per taxpayer"

And the Supreme Court just ruled that you can't have ownership expenses if you don't have a loan/lease payment.

So frugal people who have maintained their vehicles and paid off the debt are penalized and people who splurge and buy a new car or lease one get a benefit in a BK.

If you need the ownership expense, take out a loan using a car as collateral...keeping the loan amt + other car value under the exemption limit. Use the loan $ to pay a BK attorney....or some other legit expense.

Tom in Colo

[btbeme]

Gosh, tcreegan, are you saying that the BK laws can cause confusion, difficulty in understanding, pretzel logic, and backwards-ass reasoning? Really? ;-)

Its a pity that the 2005 BK "reform" act prohibits attorneys from suggesting creative answers to logical questions such as the one posed above. Thank God for internet forums such as this where the crazy-straw logic of the Bankruptcy Alternate Universe can be explained... Not to say that I myself took advantage of many suggestions found herein to make my BK go more smoothly...

[OhioFiler]

Gosh, tcreegan, are you saying that the BK laws can cause confusion, difficulty in understanding, pretzel logic, and backwards-ass reasoning? Really? ;-)

Its a pity that the 2005 BK "reform" act prohibits attorneys from suggesting creative answers to logical questions such as the one posed above. Thank God for internet forums such as this where the crazy-straw logic of the Bankruptcy Alternate Universe can be explained... Not to say that I myself took advantage of many suggestions found herein to make my BK go more smoothly...

You've identified the problem with allowing 535 attorneys/power hungry clowns create laws in DC. They are clueless to reality. Thankfully, the American people will always find ways around their mistakes.