I reported the full asset price of the personal car ,and then defined 40% business use. However, I see in the balance sheet Turbotax Business generates, the asset cost being defaulted rather than the depreciable cost (40% of asset value). Is it correct? Shoud I override and move forward?
It is correct, the percentage of use is for calculating depreciation, but for balance sheet purposes the full cost of the vehicle will be listed.
@ThomasM125 so, if I understand your response fully: if I bought the car using a personal check, should the S-corp owe the owner(me) for the entire cost of the vehicle, even though only 40% of the usage is for business purpose? Otherwise, liabilities would not match the asset totals.
Does any one know whether what Turbotax Business does is correct - including in the balance sheet the total value of the asset and it liability (when bought using personal checking account) for the partial business use vehicle?