MACRS Sole Proprietor uses personal vehicle for some business errands

midpitts · ‎March 25, 2026

I am a sole proprietor. MACRS section of Schedual C is stopping me from filing my taxes

I tried putting my Basis at 0 to get me out of the loop, but that didn't work. All I want to do is get my mileage paid for the business errands I did. Can anyone help me with figuring out what I need to do to get out of this section and file my taxes? I use the TT Home and Business edition on my desktop. This version was not an option in the drop down menu on this form. TIA

MindyB

It depends- if you used actual expenses (including depreciation) the first year you used that vehicle for business, you are required by the IRS to continue using the actual expenses method for as long as you use that car; you cannot switch to mileage later. However, if you used the standard mileage in the first year (or this is the first year), you are allowed to switch between the two methods in any following year.

To resolve the loop, you can use the Forms mode to delete the "Car & Truck Wks" associated with that vehicle, which will clear the stuck data and then you can go back and re-enter the data to get to the mileage method in the step-by-step interview.

Make sure if you used actual expenses, you do not delete this, because if you sell the car, the depreciation taken is subject to recapture. If that is the case, go back and change the basis to the previous amount prior to zeroing it out and enter the expenses.

Here is an article you may find helpful: : How do I claim vehicle expenses and switch methods?

View solution in original post

MindyB

It depends- if you used actual expenses (including depreciation) the first year you used that vehicle for business, you are required by the IRS to continue using the actual expenses method for as long as you use that car; you cannot switch to mileage later. However, if you used the standard mileage in the first year (or this is the first year), you are allowed to switch between the two methods in any following year.

To resolve the loop, you can use the Forms mode to delete the "Car & Truck Wks" associated with that vehicle, which will clear the stuck data and then you can go back and re-enter the data to get to the mileage method in the step-by-step interview.

Make sure if you used actual expenses, you do not delete this, because if you sell the car, the depreciation taken is subject to recapture. If that is the case, go back and change the basis to the previous amount prior to zeroing it out and enter the expenses.

Here is an article you may find helpful: : How do I claim vehicle expenses and switch methods?