2 Businesses & 1 Vehicle

[TreeFarmGuy]

Good afternoon

I have two businesses, one llc and one farm that I share a vehicle between.

Between the two businesses I usually have move than 50% business use of the vehicle. But some years I could fall below the 50% mark.

Let’s say the vehicle is new, no trade in, how do I input this into turbo tax? 

Thanks!

[DianeW777]

This is not something that can be easily tracked for business use percentage overall.  The vehicle will need to be entered into each business activity. If you are using standard mileage rate then the business miles in each activity will be calculated accurately regardless of the overall business use percentage.

If actual expenses are being used then you may have some manual work to do to be sure the expenses are reflected accurately as well as the depreciation.  Please update with more details if actual expenses are being used.  My first suggestion is to enter the vehicle once in one of your businesses as an asset and use the correct business use percentage and then do not enter it again.

[TreeFarmGuy]

Thanks for the reply DianeW777

I am using the actual expense method. I chose that method because I did not want to have to pay back depreciation if I fell below the 50% business usage method in any one or more years. 

[MarilynG1]

You may have Depreciation Recapture whether you use Actual Expenses or Standard Mileage deductions when you sell or trade-in your Business Vehicle. 

On average, the vehicle is entirely depreciated in 5 years (or the business use portion of the vehicle is fully depreciated in 5 years). It just depends on the actual business miles driven and has nothing to do with the percentage of business use when it comes to the recapture of depreciation.

Here's more info on Using a Vehicle for Business and Depreciation Recapture. 

@TreeFarmGuy