Vehicle mileage and depreciation

Forum|Forum|4 years ago
May 9, 2022
2 replies
13 views

I have a client that purchased an 84000.00 truck for business. He did not record mileage, but the return asks for mileage even if I choose the option to use actual expenses. I can get an average for the miles but why does it ask for it when your answers imply that you do not have a mileage account?

Can someone please tell me where to input the $84000.00 truck for Sec 179?

Thank you!

ProSeries Professional

This topic has been closed for replies.

IRonMaN

Level 15

The purpose of mileage is to kinda decipher how much of that 84,000 gets to be written off. If he drives 20,000 miles a year and only 500 miles are for business, it starts to get difficult to write off the whole truck.

Slava Ukraini!

M

mcdanielrchAuthor

Level 3

Thank you for your answer. But I guess I didn't word my question correctly. If there is no record of mileage for the year, do I need to estimate mileage?

IRonMaN

Level 15

"do I need to estimate mileage?"

No, the client needs to do that. You do need to answer the questions correctly as to whether or not the mileage records are written.

Slava Ukraini!

qbteachmt

Level 15

You intended to use Actuals, but you still need to know how much of the Actuals was business, if there is any mixed use.

"I can get an average for the miles"

It's not "average." It's supposed to be documented, not estimated. If the vehicle was used solely for business, that makes it easy. Check any maintenance and repair receipt, tire purchase, rotation, etc. They all document the mileage on that date of service.

If they have a routine travel scenario, perhaps they have a schedule from work assignments that will help them create a mileage log from a work log.

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