Hello. I am filing a 2019 tax return for my S Corp. I have two cars titled and registered as personal (not business), one car is mainly used for business related trips. It was financed until mid 2019 when I paid it off, the loan was under my name, not the company.
i am not sure how to fill in Deductions -> Business Asset Summary (Form 4562). My CPA listed that car as an asset with 100% business usage in 2017 and 2018. I used the car 70% for business in 2019. If I change the percentage, it changes the Depreciation and AMT numbers for prior years. Should I manually change the numbers for previous years or is it okay to put in amounts different than prior years?
- The car was purchased for $11833 on 03/2017.
- 2018 asset details are Current Depreciation $3787, Current AMT $3017
- 2017 it was Depreciation $2367 and AMT $1775.
But when I change the percentage to 70% it changes prior amounts as well. Should I then move to the next step and select the option saying that the numbers do not match my records and then type in the amount of all prior years depreciation as $6154 (2017+2018 depreciation numbers)
If I do that, it would bring my current depreciation down to $852. With 100% it would be $1775 and this is the amount that is showing as next year on 2018 .
Yes, you should select the option saying that the numbers do match your records and correct the calculated amounts to what was actually taken on the returns.
Whatever was filed on the prior year tax return, is basically "set in stone" (unless you amend.) Change the prior year amounts to what was actually deducted on those returns and TurboTax will calculate the correct amount going forward based on your amount of business use.