topic Actual Vehicle Expenses for more than 1 business in Deductions & credits

Actual Vehicle Expenses for more than 1 business

ronemord1 — Sat, 15 Feb 2025 18:35:18 GMT

How do I enter the actual vehicle expense when the vehicle is used for more that 1 business. Do I enter the total vehicle expense, such as total repair costs of $1000, on each Turbo Tax business form, or do I allocate expense and enter the allocated cost. For instance do I enter $1000 repair cost for vehicle expense for each business and assume that Turbo Tax allocates the cost or do I enter $100 (assuming I use the auto for 10% for business 1) and enter $200 for business 2 (assuming I use the car 20% for business 2).

Simply do I allocate the cost or does Turbo Tax allocate the cost in the software.

Thanks

Re: Actual Vehicle Expenses for more than 1 business

KrisD15 — Sat, 15 Feb 2025 23:47:57 GMT

You must allocate the expenses, the program will not recognize that fact that the same vehicle is entered twice.

If you have two businesses and entering the vehicle twice, (once on each Schedule C) yes, also split the cost/basis 50/50. Enter "as if it is two separate vehicles"

It may be tricky, and you may have difficulty when entering mileage. Why does mileage matter if you're using Actual Expenses? The percentage of business miles and personal miles to the total miles for the year determines the percentage of business use which, in turn, affects depreciation if the vehicle is also available for personal use. Split the miles as well, but you might need to do that other than 50/50 if one business uses the vehicle more than the other. You'll have to determine that.

Also, you will need to add the depreciation form both businesses when/if you sell the vehicle to calculate any Depreciation Recapture and/or Capital Gains.

Treat as two different vehicles and split all the entries when putting into service.

Add everything together and treat as one vehicle when disposing.

Re: Actual Vehicle Expenses for more than 1 business

Shawn B1 — Fri, 09 May 2025 16:38:13 GMT

Can you explain how to handle Auto Depreciation of one vehicle on two separate schedule Cs when one of the businesses has been using the vehicle (and depreciating it) for a number of years, and then I started a second company (running both businesses at the same time). How do I show the vehicle depreciation on the second (new) schedule C while I still have business use with the vehicle in the first (older) business? Thank You