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Depreciation forms for S Corp owners

An S Corp who owns a vehicle does not deduct mileage, it deducts actual expenses. So why does Turbo Tax ask for mileage on Form 4562? Is it incorrect to fill that section out (lines 30-36) if you are deducting actual expenses? 

 

Also once the vehicle (only asset) is fully depreciated, would you stop filling out form 4562 or any other of these depreciation forms or worksheets (there are so many!) in subsequent years? Does TurboTax still put it all in there and I just have to go in and delete the unnecessary ones myself, or will it not even ask me to fill them out once the vehicle is fully depreciated? This is for the downloaded version of TT Business. Thanks!

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3 Replies
DaveF1006
Employee Tax Expert

Depreciation forms for S Corp owners

TurboTax may or may not know that the depreciation period has ended, so you may need to delete the forms. 

 

If you claim actual expenses, leave out the mileage. if the program insists, you may wish to record it to satisfy the program. I think the program is just trying to be helpful so I can inform you which is the better deduction, mileage or actual?

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Depreciation forms for S Corp owners

Thanks, I guess I specifically need to know if lines 30-36 on Form 4562 are necessary for S Corp owners deducting actual vehicle expenses. It looks like it is a section where it is trying to gather information on business versus personal use of the vehicle so if I must have it filled out because it is a necessary section for the IRS, I'll keep it. But since I am deducting actual vehicle expenses I wasn't sure if I should take it out so both wouldn't be there. Is there any expert who knows for sure?

 

This is the last year of depreciation for the vehicle. I am still unclear what forms and worksheets I will stop filling out after that point. I don't want to delete anything that is still necessary. It would be nice if Turbo Tax just didn't include what is unnecessary since it knows I finished depreciating the vehicle the prior year.  Has anyone been through this and did the forms automatically fall off following a vehicle's final year of depreciation?

RobertB4444
Employee Tax Expert

Depreciation forms for S Corp owners

You should fill it out.  The S-corp can use actual expenses or mileage and the TurboTax program will figure out which one is better for you.  And, as you pointed out, the percentage of business use component is solved by the mileage as well.

 

You won't use the depreciation forms anymore after this year but they may still be included in the return next year.  They'd just have zeros on them.  The system will not try to take another deduction after the car is fully depreciated.  And your auto expenses/mileage would still be viable deductions even after the car is fully depreciated.

 

@IHaveABigQuestion 

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