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Actual Expense

MGC94
Level 7

if you use actual expense do you put down gas for the whole year? 

Example $5,000 gas (even if it is business and personal gas and the miles will allocate the amount) 

Example car ins $200 x 12 $2,400 or do you only take like 10% of that if the schedule C is a small income amount? 

The 1099 is only for $1,800 as it is a start up business 

Could someone tell me what to do with this. Thank you

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1 Comment 1
Just-Lisa-Now-
Level 15
Level 15

Assuming they were in business the entire year, you would use total annual miles vs business miles to get it to allocate the proper % of a full years worth of actual expenses.

If they were in business only a portion of the year, youd only enter actual expenses for that period, not the whole year.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪