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Old 04-08-2013, 03:42 PM
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nitz369 nitz369 is offline
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Default New Vehicle and Taxes

Okay I think I understand but I want to be sure because its going to give me a fairly large deduction.

In 2012 we decided we needed a bigger vehicle in order to do trips to the park and drive a couple kids around to school and such. So we bough a new Minivan.

Question:
In TurboTax I am going through the Business Vehicle Expense section and its asking about mileage and all of that, but nowhere does it ask for total purchase price or state taxes, where do I put this info?

Would I use my T/S% to calculate percentage of use? or is that based on mileage?

We do use for personal use but the reason we purchased it was because we needed something to haul kids around, without the daycare we would have never purchased this vehicle.

We are actually closing the business in 2013, is there anything I should be worried about if there is some sort of Section 179 deduction for this vehicle? Like having to payback a portion of the deduction?
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Old 04-08-2013, 05:39 PM
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TomCopeland TomCopeland is online now
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Default Car expenses

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Originally Posted by nitz369 View Post
Okay I think I understand but I want to be sure because its going to give me a fairly large deduction.

In 2012 we decided we needed a bigger vehicle in order to do trips to the park and drive a couple kids around to school and such. So we bough a new Minivan.

Question:
In TurboTax I am going through the Business Vehicle Expense section and its asking about mileage and all of that, but nowhere does it ask for total purchase price or state taxes, where do I put this info?

Would I use my T/S% to calculate percentage of use? or is that based on mileage?

We do use for personal use but the reason we purchased it was because we needed something to haul kids around, without the daycare we would have never purchased this vehicle.

We are actually closing the business in 2013, is there anything I should be worried about if there is some sort of Section 179 deduction for this vehicle? Like having to payback a portion of the deduction?
You would only need to worry about entering the price of the vehicle if you are using the actual expenses method of claiming car expenses. You never use your time-space% on your car. The business portion of your vehicle is your business miles divided by your total miles driven. If you purchased the vehicle new in 2012 then you can (and should) use the 50% bonus depreciation rule (because their is no recapture of depreciation when you go out of business in 2013). Don't use the Section 179 rule because if you do you will have to pay some of it back in 2013. So, use the actual expenses method and the 50% bonus rule.
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Old 04-08-2013, 09:07 PM
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nitz369 nitz369 is offline
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Turbotax is really confusing, It is asking all kind of questions, I used approx 1500 miles for business and total of about 3000 driven. Purchase price was $36,000. I don't have actual expense records for Gas, but I do have Insurance numbers and Internet on the loan numbers, It is coming up with total deduction of $2600. but yet before it shows that it shows a number for actual expenses ofr about $10,000.

Also when it asks me how long I plan on using this vehicle for buisiness what do I put?
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Old 04-09-2013, 08:53 AM
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TomCopeland TomCopeland is online now
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Default car

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Originally Posted by nitz369 View Post
Turbotax is really confusing, It is asking all kind of questions, I used approx 1500 miles for business and total of about 3000 driven. Purchase price was $36,000. I don't have actual expense records for Gas, but I do have Insurance numbers and Internet on the loan numbers, It is coming up with total deduction of $2600. but yet before it shows that it shows a number for actual expenses ofr about $10,000.

Also when it asks me how long I plan on using this vehicle for buisiness what do I put?
Turbotax is confusing. It's calculating your car expenses using the actual method. Put that you plan on using the vehicle for 2 years.
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