How to calculate my auto expenses cars are fre and clear no payments.

[strummerfan]

I am amending my Sched I and J and need to square in on my auto expenses. Both of my cars are free and clear and I do most of the maintenance myself, should I take the state allowance of $486 per car Michigan or make a WAG of how much my cars actually cost per month.

Thanks

[ccsjoe]

If you are looking for purposes of Schedule J, then get the actual cost of your auto expenses. Even if you do your own maintenance, estimate how much the labor would cost for an oil change for example. Or rotating tires. Don't forget to include gas, auto insurance, toll booths, oil changes every 3 or 5K or so. Additional coolant, tires, transmission fluid, brake fluid, washer fluid, etc. In my experience, allowances are used only for means test and as a barometer of whether your actual expenses are deemed too high or not enough.

[strummerfan]

Is there an IRS UST trustee maximum or baseline for this?

[justbroke]

For the means test, there is a standard IRS amount. It's located at the Trustee's website that has to do with BAPCA Means Testing. http://www.justice.gov/ust/eo/bapcpa/meanstesting.htm

These are known as "operating costs" and it varies by region and may be higher in metropolitan areas. So you have to look it up. As for the "ownership" allowance, this is currently being heard by the U.S. Supreme Court. Most Districts don't allow the ownership allowance ($489/month per vehicle up to 2 vehicles) when the cars are unencumbered. In any event, the IRS rules allows a $200/month per vehicle allowance if the vehicle is older than 6 years old or over 72,000 miles.

On Schedule J, you use your actual costs.

[tigergem]

My district allows the $489.00 ownership allowance on Schedule J. Per my recently confirmed modification, and I used it.

[kornellred]

The ownership allowance is a separate issue than either the vehicle loan payment (if any) and the cost of insurance, correct?

[tigergem]

The ownership allowance is a separate issue than either the vehicle loan payment (if any) and the cost of insurance, correct?

I'm not positive about the car payment, because that doesn't apply to me, so I didn't really look at that information detail, however, my insurance was itemized separately.