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Level 5
March 25, 2020
Solved

Schedule C Auto Expenses

New client's prior tax preparer, who is a CPA, listed auto mileage as miscellaneous expense for the past 2 years and  I have my suspicions as to why.   This is not the proper category, as it should have been on the Car Expenses Worksheet. I need to put it in the proper category.  Will this be a red flag to the IRS?  Or was it ok to list as miscellaneous and I missed that instruction???

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Just-Lisa-Now-
Intuit Community Champion
March 25, 2020

The EA I used to work for did this all the time, he was old and tired and didnt want to fill out all the car info, he'd just say "its still deductible, doesn't matter where you put it"  LOL

Doing things right shoudnt be a red flag.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

11 replies

Just-Lisa-Now-
Intuit Community Champion
March 25, 2020

The EA I used to work for did this all the time, he was old and tired and didnt want to fill out all the car info, he'd just say "its still deductible, doesn't matter where you put it"  LOL

Doing things right shoudnt be a red flag.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 5
March 25, 2020

LOL!  Thanks for the confirmation.  👍

BobKamman
Level 15
March 25, 2020

Back in the 60s, before Service Centers were built, returns were filed with each IRS District office and given a once-over on what was known as "Opening Day."  (Early returns were looked at, as well.)  You really think someone at IRS now looks at every return and says, "Hey, I don't remember Charlie claiming car expenses last year, what's up?"

Ha Ha Ha  😀