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Level 2

Solved

Car Purchase

Forum|Forum|3 years ago
November 28, 2022
6 replies
37 views

We have just purchased a car for cash. This expenditure shows up as a large bump in monthly expenses for November. How have others handled this? Hide the expense? Can it be averaged out some how?

Ideas?

Thanks

Mint

Best answer by Critter-3

I understand that and have added it as an asset. So I should hide the purchase price so as to keep things "balanced"?

Not sure what you mean by "hide" ... in a regular bookkeeping program you have the debit for the expense in the checking account and the credit for the asset.

Talk to the folks at MINT support.

user17750693608

Level 8

Is this personal use or business use?

xmasbaby0

Level 15

If you purchased a car for your personal use, there is nothing to enter on your tax return regarding the car, unless you are itemizing deductions and want to enter the sales tax you paid. Otherwise, why are you asking about a monthly increase in expenses?

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2022 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax. You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle.

Sales tax is an itemized deduction. “Major purchases” that you can enter for the sales tax deduction include:

Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

Aircraft or boats

Mobile homes

Manufactured housing

Building materials for major home improvements

You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers

https://ttlc.intuit.com/questions/1901222-which-deduction-should-i-choose-sales-tax-or-income-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sales-tax-deduction

https://ttlc.intuit.com/questions/1900791-how-do-i-find-my-local-sales-tax

https://ttlc.intuit.com/questions/2566624-how-much-sales-tax-did-i-pay-last-year

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

VolvoGirl

Level 15

I believe he is asking about entering it into MINT. Not a tax question.

Don and TrennaAuthor

Level 2

Correct.

Critter-3

Level 15

How things are entered in an accounting/bookkeeping situation is NOT the same as what will be reflected on an income tax return as the asset may be depreciated or expensed. In MINT you have purchased an asset.

Angie G1

Level 2

COULD THAT BE THE WAGE ON LINE 25 C FROM MY 1040

Cynthiad66

Level 14

Line 25c—Other Forms Include on line 25c any federal income tax withheld on your Form(s) W-2G. The amount withheld should be shown in box 4. Attach Form(s) W-2G to the front of your return if federal income tax was withheld.

If you had Additional Medicare Tax withheld, include the amount shown on Form 8959, line 24, in the total on line 25c. Attach Form 8959.

Include on line 25c any federal income tax withheld that is shown on a Schedule K-1.

Also include on line 25c any tax withheld that is shown on Form 1042-S, Form 8805, or Form 8288-A. You should attach the form to your return to claim a credit for the withholding.

Instructions for Form 1040

@Angie G1

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Angie G1

Level 2

ow i do that bec i dont have nothing of that

Anonymous

If I were you, I would just keep it as an expense, but then add the new car as an asset. That will show you the most accurate reflection of your new net worth.

Mint will also keep track of the car's worth over time.

Kschumacher

Level 2

I would hide the expense so it doesn’t throw off the budget. Mainly because it’s an outlier expense and doesn’t occur often