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Level 3
July 14, 2020
Solved

Client bought big rig under his name. He is using it for LLC. How do I depreciate the truck?

  • July 14, 2020
  • 6 replies
  • 56 views
Should I do a Schedule C for his truck depreciation as sole-proprietor (even thought there is no income) or can I depreciate it under the LLC (but is not under the LLC name).
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Best answer by qbteachmt

Then Lisa's guidance is applicable. There is no difference between your Person and their LLC. The LLC is disregarded.

6 replies

Just-Lisa-Now-
Intuit Community Champion
July 14, 2020

What kind of LLC?   A Single member LLC is disregarded for tax purposes, its treated the same as a sole prop.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 3
July 14, 2020

A Single member LLC

qbteachmt
qbteachmtAnswer
Level 15
July 14, 2020

Then Lisa's guidance is applicable. There is no difference between your Person and their LLC. The LLC is disregarded.

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qbteachmt
Level 15
July 14, 2020

Why would you title and insure something personally, if you formed an LLC? And if that is a partnership LLC (multi-member), then that really was a bad move. You would not have a Sched C unless this person contracts to their own multi-member LLC; is that what they did?

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Level 3
July 14, 2020

It is a Single Member - LLC....  Would it be correct to depreciate it under the LLC (Schedule C), even though it is not under the LLC Name?

qbteachmt
Level 15
July 14, 2020

"Would it be correct to depreciate it under the LLC (Schedule C), even though it is not under the LLC Name?"

There is no difference.

There is no "LLC" Sched C. The Sched C is a Form that is part of a 1040 Package. A 1040 tax filing is for the individual tax payer and your client happens to be running a business, by themselves, which is why you will use Sched C in addition to their 1040.

Forming a Limited Liability Company provides some business protection for an individual as far as State and Legal issues go. For Fed taxes, there is no separation: the person and the LLC are the Same Being. The Feds don't not have "LLC" entities for individuals.

What you might want to is direct your client to seek legal and insurance guidance as to whether the vehicle should be titled and insured differently. But you are doing Taxes, so for you, there is nothing different here. You have the same as Sole Proprietorship, because you have a Sole person running a business on their own.

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