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On the Car and Truck Expenses Worksheet I do not see where it has a line entry for depreciating vehicle improvements for a vehicle that has already been placed in service.
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What kind of improvements are you looking at adding? You can expense off curb feelers and the fuzzy dice that hang from the rear view mirror.
Slava Ukraini!
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By carefully reading the question I posted, you can understand what is being asked. When an item of improvement is made to a business vehicle and depreciation has been started beginning on that date for the vehicle, where do you enter the vehicle improvement to begin depreciation on that item???
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I read your question very, very carefully. But I’m not clear if you are trying to add something significant or a repair.
Slava Ukraini!
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Add Ass it as a separate asset if you think it needs to be depreciated.
The more I know the more I don’t know.
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If you make any major improvement to your vehicle (e.g., new engine, air conditioning) you can depreciate the improvement. A major improvement for a car is treated as a new item of 5-year recovery property. It is treated as placed in service in the year the improvement is made. It doesn't matter how old the car is.
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The question is where can it be added using the Car and Truck Expense Worksheet. I can not find a way to add it.
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"If you make any major improvement to your vehicle (e.g., new engine, air conditioning) you can depreciate the improvement. A major improvement for a car is treated as a new item of 5-year recovery property."
Even under the not so new TARS Regs?
The more I know the more I don’t know.
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Where then on the Car and Truck Expense Worksheet in Intuit Pro Series would it be entered....I can't find where I can enter it.
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I had to do this once. It was a PITA. Client put a new engine in her Mercedes. I'm pretty sure I had to calculate depreciation outside of the program and manually enter overrides each year.
From memory (which ain't what it used to be), if the expected life of the improvement is longer than the class life (5 years) it gets depreciated. If it's less than the class life it's a repair. I doubt this can be done via the Car and Truck Wks. Luxury auto limits apply but I don't remember how I had to deal with a vehicle limited in year X and an improvement limited in year 1. I just remember there were overrides involved each year until she finally sold it.
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Thank you so much for giving a straight answer. I have contacted Intuit and let them know they need to make a revision on the Car and Truck Expense Worksheet so improvements can be added to the vehicle depreciation schedule. I will give an update when they provide an answer back as to what they will do to add it on that worksheet.
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@spowers23 wrote:
I will give an update when they provide an answer back
as to what they will do to add it on that worksheet.
I will be impressed if they provide an answer back. 🤣
Is this ProSeries? If so, I am 99.99999484614135144% certain they will never add it to the worksheet. I was going to say 100%, but I'm an optimist.
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People have been complaining for years about the simple PA local wage tax return and they can't fix that. Do you honestly think they're going to fix something like this that most people never see and is very rare? Time to go to sleep and keep dreaming. Good night.😴
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@TaxGuyBill That upgrade scheduled to go online 1 week after they have successfully added form 5227.
Slava Ukraini!
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By carefully reading the question I posted, you can understand what is being asked.
Wow... really? I know it's a Monday but still....
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A serious tax question deserves a serious answer from Tax professionals.
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Only if the question has enough details to answer it.
Question:
My client put a new engine into their business vehicle. How do I enter that into ProSeries?
That isn't so tough is it? There are a lot of people posting here. Some that are real novices to preparing returns and some are just plain old DIYers. So when someone puts a factless question out there, we don't really know what path we are heading down without details.
And nobody really owes you anything here. We are all volunteers putting in some time to help other folks. You have been around since 2021 but yet I don't see that you have ever helped a single lost soul here. So until you start helping other folks, don't whine about the help you do get here.
Slava Ukraini!
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And a complete question helps us *volunteers* provide complete answers.
The mind reading classes were cancelled during COVID, and all the money Intuit spends on Super Bowl ads touting TurdoooTax prevents them from re-instating them.
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A serious tax question deserves a serious answer from Tax professionals.
I agree, but I would add "complete" to that statement. I 'ass-u-me' you often have to ask your clients for clarification?
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Luckily someone caught us when we were in a good mood. Who knows how we would have responded if we were crabby 😁
Slava Ukraini!
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I may use Bob's strategy & check the 'level' before answering any questions. Not that I answered the abbreviated initial posting on this one.
So, I'll just move along now 😉
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I sometimes I type "the" instead of "they" and stupid little things like that. Your typo adds a little color and goes along well with this thread. 😂
Slava Ukraini!
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I am glad you all have your "Johnny Carson Turban" on when I ask questions.😃 Thanks for all you do!
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aka Carnac the Magnificent 🙂
Didn't Chuck use that for his avatar occasionally ????
RIP - CAGMC !!
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That was George doing those impressions.
Slava Ukraini!
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Your memory is much better than mine, Jeff.
Sorry George....