Depreciation of Business Asset (Car) Allocation to LLC (Limo Service) and/or Contractor (Uber/Lyft) Work

inquisitax — Mon, 18 Nov 2024 01:01:05 GMT

If I use a car for limo service part of the time and as a contractor for Lyft and Uber how should I allocate the depreciation expense for deduction? Should I use the percentage used for business and contracting as a divisional allocation or claim the deduction 100% from one or the other? I was going to combine the business and contracting work both on personal taxes rather than seprate the business tax.

Re: Depreciation of Business Asset (Car) Allocation to LLC (Limo Service) and/or Contractor (Uber/Lyft) Work

AmeliesUncle — Tue, 19 Nov 2024 05:36:34 GMT

If you are reporting the Limo service as a separate business from the Uber/Lyft, you would enter the miles for each business separately and the program will give the prorated deduction to each business.

From strictly a tax viewpoint, it sounds like they could be combined as one business (assuming the LLC is only one member and has not made an election to be taxed as a corporation). But depending on the details, that could possibly reduce legal liability benefits of the LLC (you would want to consult your business attorney if that is a concern).

topic Depreciation of Business Asset (Car) Allocation to LLC (Limo Service) and/or Contractor (Uber/Lyft) Work in Deductions & credits

Depreciation of Business Asset (Car) Allocation to LLC (Limo Service) and/or Contractor (Uber/Lyft) Work

Re: Depreciation of Business Asset (Car) Allocation to LLC (Limo Service) and/or Contractor (Uber/Lyft) Work