Get your taxes done using TurboTax

It depends.  If you are a single member limited liability company (SMLLC) you would continue to file a Schedule C. SMLLCs are considered disregarded entities separate from their owners.  This is because the IRS expects the taxpayer to carry the income onto his or her personal tax return using the Schedule C for sole proprietors.  

When you convert an asset from personal use to business use it's important to note that you must use the lower of cost or fair market value (FMV) on the date of conversion, for your cost basis.  This cost basis is entered into the asset section with the date placed in service for business, add to the cost basis any expenses to improve it immediately before conversion.

1. Any upgrade to your personal residence will not be factored or included in your business Schedule C. 
2. The cottage, and cost of improvements in 2023 to the cottage, if used for business can be depreciated.  The way the cottage is depreciated depends on whether it is a residential rental cottage or a nonresidential building used for your business activity as an office or storage of business items.  
3. You would make the following selection for depreciation method depending on the note above.
   • Residential Real Property is 27.5 years
   • Nonresidential Real Property is 39 years  
     • Depreciation of Business Assets

Business Use of Car Information:  As a person who is self-employed this can be deducted under Vehicle expenses on the business activity (Schedule C).  The business use percentage is always determined by business miles divided by total miles for the year or portion of the year the vehicle was placed in service for business.  The steps to enter are shown below.

For self-employment purposes follow these steps to enter your vehicle for your business.

1. Down the left side, click Federal.
2. Click on Wages & Income.
3. Under Your income, click on Edit/Add next to Self-employment income.
4. Click on Edit next to the business name.
5. To the right of the vehicle expenses, click Add or Review.
6. Under Vehicle Summary, click Edit to edit the entries.  Click Delete to delete the entries

@casirendl