Question

Schedule C - Business use of car and date in service

Forum|Forum|3 years ago
March 10, 2023
1 reply
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This is our first year using TurboTax. We keep track of business miles and write a reimbursement check from business funds at the end of the year. In the past, our accountant put that amount on line 9 (Car and Truck Expenses) and left Part IV (Info on Your Vehicle) blank. During TurboTax Review the program is asking for a date vehicle was placed in service. Do I need to fill this out? If this vehicle has been used in prior years and I need to fill in Part IV, what date should I use? Thanks

TurboTax Home & Biz Windows

M

mglauner

Enter the date you first started using the Vehicle for Business. Your accountant should provide a Vehicle Expenses Worksheet, relating to the amount on Line 9 on your Schedule C.

Even if you use the Standard Mileage Deduction, depreciation is a factor when you sell or trade-in the vehicle, so you need to know your original Cost Basis, and % of Business Use, which is on the worksheet.

Here's detailed info on Using a Vehicle for Business.

@Dan155

D

Dan155Author

This is our personal car. Never purchased as a business vehicle or depreciated the car. Unfortunately, our accountant died suddenly (no staff) so we only have our old returns. Schedule C, Part IV (Info on Your Vehicle) was always left blank. I think that section was left blank because we have Form 4562 for some depreciation. When I filled out the Form 4562, the error still did not go away. Any ideas on why? Thank you ! @mglauner

A

AnnetteB6

If you know when you originally purchased the vehicle and started using it for your business, then that is the date that you should enter. Without entering that information, the error message cannot be cleared.

You can go through your previous tax returns to see when it was first reported either on Form 4562 or on Schedule C to determine the date it was first used for business.

@Dan155

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