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how to transfer a business car depreciation table to another rental property

 
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5 Replies
Carl
Level 15

how to transfer a business car depreciation table to another rental property

You don't really "transfer" per-se.

I assume you are using the "per-mile" deduction. If so, just show it as removed from property A use for personal use.  Then enter it in the vehicle expenses section for property B. Just make sure the date you stopped using the vehicle for property A, does not overlap when you start using it for property B.

 

how to transfer a business car depreciation table to another rental property

Thanks for the answer.  My car is actually expensed with depreciation.  In 2020 it was used 98.3%  for business and the allowed depreciation before business percentage adjustment is $8492.  I sold the property that the car is "attached" to on 11-2-2020.  Does that change your previous answer?  My spouse and I have figured our tax, mostly rental properties, for 50 years.  There comes a time for some of us our mind does not work as well as it should for non-routine rental taxes.  Having to assign another property to the car is non-routine for us.  Could you be just a bit more detailed on the answer as to where to make entries, how to do the depreciation forward on the car using another house we are depreciating, etc.  Absolutely anything will be a help.  Your first answer that assumed mileage was a help.

Carl
Level 15

how to transfer a business car depreciation table to another rental property

I sold the property that the car is "attached" to on 11-2-2020.

You mean "was" attached to. 🙂 I seriously doubt you sold the car as a part of the property sale. Assuming the rental property the car was used in no longer exists on your books, simply remove the car from the business for personal use.

On the screen where you have the buttons for rental income, expenses, asses/depreciation and elect to start/update the Vehicle Expenses section. Elect to edit the vehicle.

Select the checkbox for "I stopped using this asset in 2020", enter the last date of business use and continue.

Select "yes I own this vehicle" and continue.

On the "was it available for personal use" screen, I assume you're selecting yes to both questions. Then continue.

For mileage tracking select YES to both questions and continue.

Enter your odometer reading and miles, then continue.

Select 0-4 vehicles and continue.

Select NO and continue.

Enter any other vehicle related expenses/fees and continue.

On the vehicle deduction page click continue.

Select that "you started using it 100% personal use...." and any other options that apply, and continue.

For "did you convert this vehicle to non-business use?" select YES and continue.

You're done.

Some of your screens may vary based on the selections that apply to your specific situation. Best I can tell you for your specific situation, is to actually read everything on every screen in full, before you make selections or enter data. The small print matters.

how to transfer a business car depreciation table to another rental property

Am I really supposed to answer questions to convert the car to personal use when I am going to continue to use it for business use, just put it with another property?

Carl
Level 15

how to transfer a business car depreciation table to another rental property

Yes. You are converting it to personal use. In the new business you will be converting it from personal use to business use. Just understand that the conversion dates can't overlap. So if you convert it to personal use on June 1, thus removing it from the old business, you convert it back to business use on Jun 2 or after, for the new business.

 

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