When you do actual expense for a car, with a depreciation cost basis. Car-Truck worksheet line 31 cost basis 48,000. 34A. Yes or no? Qualified property
Can someone let me know if it's yes or no? Thank you
IRS can help Pub946 How To Depreciate Property https://www.irs.gov/pub/irs-pdf/p946.pdf
I will read it. Can you let me know either way....
Im assuming its a no and not a yes for that line correct?
It is asking if it qualifies for the Special Depreciation Allowance ("Bonus Depreciation").
In most cases if it is allowing you that option, the answer is "yes", but not every case.
pro series on the phone said it has to be no? Which is why I am wondering do I have to amended 2020 returns
Ya gonna believe the people on the phone or someone like Bill who knows what he's talking about?
Did you actually get the make, model, GVW, etc for the car and look up the rules for autos?
I would love to think the lady on the phone is wrong. I would like to tell you exactly what I have. Please no harsh comments. I just want to get this straightened out is all. The lady on the phone said it is going to mess up my deprecation calculations for the next 5 years.
2020 Dodge
11/14/2020
B1 truck
2,159 ending miles
42 beginning miles
2,114 business miles
800 gas/ oil/ repairs/ ins
line 31. cost $48,000
line 34a. YES (lady on the phone said that they are not qualified property)
line 13 on sch c transferred 47,933
any chance someone is willing to do a phone call with me I can compensate by mailing a check/venmo.
There are a few accounts I need to go over this car thing with someone. I honestly am feeling worried sick over this.
I have a new client who H&R block gave him the amount, but the car wasn't over 50% used. Pro series said I have to amend it because it is messing up their 2021 depreciations.
Totally regretting this and wish it was all just standard miles even for our own accounts.
If anyone cares and I'll just be completely honest it is not my tax office, but it is my mommoms. She has owned the tax office for 25 years and a restaurant for 17 years prior to that. She has had a few health issues over the last couple of years (shes 81) so I quit my job to help in the office full time in 2016 at 22 years old when she had a mini stroke. I am now 27 and just really want to make sure I can get this straight. I do not want any audits and I just want to do the right thing on the returns. If they need to be fixed, I want to do it before I submit 2021. I can pay everyone's interest and penalties if it was done wrong. I am not even sure if they were all done wrong (some are different). Right now I know of 6 accounts we have done and 1 from H&R that just came in this year.
Vehicles have complex rules, depending on various factors. My following comments apply to MOST situations.
Assuming that vehicle is used in the US, the vehicle you gave details DOES qualify. There is no need to amend.
But then you mentioned another vehicle that was less than 50% business use. That would NOT qualify because it is 50% or less.
Vehicles more than 50% can use "accelerated" depreciation, such as Bonus depreciation and/or 200%DB.
Vehicles 50% or less can only use Straight-Line depreciation, and can NOT use Bonus.
If a vehicle starts off with over 50% then drops to 50% or less in a following year, then you generally need to "recapture" the accelerated depreciation. That means you (1) look at how much prior depreciation was taken (including any Bonus depreciation), (2) manually calculate what the prior depreciation would have been if you had only used Straight Line depreciation and then (3) enter the difference on the very bottom of Form 4797 AND enter that excess difference as income on tax form (Schedule E for rentals or Schedule C for a business).
The lady on the phone was ProSeries Support? I thought they are not supposed to give tax advice and only help with software issues.
Or if the lady on the phone was an IRS employee, know that any oral advice they give cannot be relied upon.
"Vehicles have complex rules, depending on various factors" 👍
That's why no one can give a straight up Yes or No. I always have to look this stuff up, and I've been doing this for more years than you've been alive.
The one less than 50% was not done by us. It was done by H&R block. If you someone would be willing to do a phone call I'd really appreciate it. You have no idea. Like I said I can mail a check for your time
I have been reading and researching. I would love if someone could have a phone call with me. I will compensate for time spent on the phone. I could read and go over the amounts I have and maybe someone could help me have a better understanding.
One person crashed the car we depreciated the big amount and bought a new car. Another person sold the car and have a new car added. There is to much to type. I honestly feel worried sick over this.... I would really appreciate if someone could help me a little more
Anyone willing?
Is there another preparer in your community that you could go to for assistance?
Only H&R Block who filed the other persons wrong. 2 accountants in our community retired, but high 70s early 80s and we have no had all their accounts calling to come in
would you be willing to do a phone app with me for a few minutes? I can compensate for time spent
read the IRS instructions. You will get a faster answer than waiting for us to do your research for you.
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