Amended Prior Year Returns

[jadira1021]

Hello everyone, 

I need guidance with Schedule C tax returns. In 2020 and 2021, I made a mistake by classifying two dump trucks as assets instead of vehicles. Should I do an amended return for each year?  Can someone tell me what to do in this scenario? 

Thank you.

[George4Tacks]

What depreciation method did you use? Was the vehicle used for other than business use? Ultimately I would only be concerned if there was a change in the net income of the Schedule C. 

If necessary, amened each year. They must be done separately, starting with the oldest and reflecting any changes from that one that might also affect the next year. 

[jadira1021]

Hi, 

In 2020, I entered a 2005 GMC 5c5 Dump Truck as a vehicle. The cost is $14,000, with special depreciation of $14,000. Actual expenses were selected instead of miles.

In 2021, I am unsure why I deleted the dump truck as a vehicle and entered it as an asset entry. I entered the cost as $14k, selected the type of asset as G, and took section 179 for the $14,000. 

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In 2021, I entered a 2000 Isuzu Dump Truck as an asset entry. The cost was $20k. I took section 179, and the type of asset selected as G.

These two dump trucks are used 100% for business.

Thank you for your advice.

[Terry53029]

Dump trucks as you described would be put under vehicles (type of vehicles C heavy truck over 13000 lbs.). class life 5 years. You could take sec 179 or 100 % bonus deprecation. Like George said, if no change in net income I would not worry about amending. As a side note you cannot take mileage on dump trucks, only expenses.

[Just-Lisa-Now-]

If you took full depreciation of $14k on the same vehicle 2 years in a row, yes, youd need to amend.