I bought a used car for my business in 2021. I opened a new business in 2022. The used car is being used for both businesses in 2022. I am allocating the insurance, gasoline, registration, and maintenance between the two businesses based on percentage.
My confusion is on how Turbotax calculate the vehicle depreciation. When I inputed the vehicle information for both businesses, Turbotax computed two depreciation amounts but I think there could be only one depreciation expense for the vehicle. How should I handle it on Turbotax to ensure that the depreciation amount is calculated correctly? Thank you.
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can't be done in Turbotax
from a prior thread
Yes, you can use the same vehicle for both companies.
You will need to enter the vehicle info into the new business.
You do not need to dispose of the vehicle and reenter it in the new LLC.
The vehicle may only be deprecated in one business.
there is no way to directly allocate between two businesses.
if you allocate cost Turbotax will think you have two vehicles and use the maximum for each.
if you use total cost for both and allocate mileage limits come in on the depreciation since business use limits will apply
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when I tried different methods I could not come to the proper total without fudging the numbers which was then reflected on the 4562
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