I would like the full benefit of the actual expense method of $15,200 but seem to be getting less than half of that which shows as $7100 of vehicle expense and don't understand why?
My schedule C expenses are about 50% of my 1099 income. But if the vehicle being used is used 90% for business then I would think that 90% of the actual vehicle expense would be deductible. The program says that the deduction is over 15K but it shows vehicle expense at just over 7K. Not sure why? Thanks for your input.
Go back through the questions and look for the one that asks if you kept track of Personal Use. Say YES.
I did say yes to that question. I do see where the math takes place but not clear why. On line 29 of the Car and Truck Worksheet it shows expenses of $15,242 and it subtracts $8,043 on line 30 (business portion of lease) leaving a total vehicle expense of $7199 on line 32 which would lead me to believe that I am not getting credit for lease payments. However, to test that I reduced the amount of the lease payments in the program and my amount of tax due went up! If I raise the amount of the lease payments, the tax due falls. How can a higher lease payment lower my total vehicle expense and tax bill at the same time? Just seems counterintuitive. Seems that a higher lease payment entry should raise my overall vehicle expense and lower my tax bill. I need a drink!
@tscuderijr wrote:On line 29 of the Car and Truck Worksheet it shows expenses of $15,242 and it subtracts $8,043 on line 30 (business portion of lease) leaving a total vehicle expense of $7199 on line 32 which would lead me to believe that I am not getting credit for lease payments.
You are getting $7199 of vehicle expenses, and $8043 of rent/lease payments.
Is this on a Schedule C? If so, line at lines 9 *AND* line 20a of Schedule C.