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Returning Member
posted Mar 4, 2021 6:23:44 PM

I want to depreciate a van purchased for business on Schedule F, but vehicles are not a choice.

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5 Replies
Expert Alumni
Mar 6, 2021 8:29:41 AM

It has its own category. Please see the screenshot below.

 

Returning Member
Mar 7, 2021 12:03:21 PM

I am using Turbo Tax Deluxe, and I don't see those choices.  I just chose "asset other" and picked a 5 year life.

Expert Alumni
Mar 7, 2021 3:42:28 PM

IRS Form 1040 Schedule F is supported by TurboTax Online Self-Employed according to this TurboTax comparison.  Scroll down the left side and look for 'Schedule F'.

 

Vehicle expenses are reported in Part II line 10 of Schedule F.

 

A van would be subject to the listed property rules.  Reporting the asset in this way may circumvent the listed property rules. IRS publication 946 defines listed property below.

 

What Is Listed Property?

Listed property is any of the following.

  • Passenger automobiles (as defined later).
  • Any other property used for transportation, unless it is an excepted vehicle.
  • Property generally used for entertainment, recreation, or amusement (including photographic, phonographic, communication, and video recording equipment).

Listed property is equipment or assets that have both a personal use and business use.  The IRS is concerned that deductions related to these assets can be misused.  A good explanation is here.

Returning Member
Mar 8, 2021 3:58:39 PM

The van is not a passenger van it is a Sprinter Cargo Van.  Is this still considered listed property?

Expert Alumni
Mar 8, 2021 5:03:20 PM

Yes, it is still considered listed property. 

 

You can depreciate the Sprinter van if you select the vehicle expense in TurboTax Home and Business or Self-Employed and choose to see if actual expenses will give you a better deduction. 

 

Depreciation is not allowed with standard mileage method of claiming vehicle deduction. 

 

Electing actuals will also allow you to claim Section 179 or the Special Deprecation Allowance for first year in service which could significantly reduce your tax liability.