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Common questions about Form 2106 Vehicle Expense in Lacerte

by Intuit Updated 2 weeks ago
  1. Go to Screen 30, Unreimbursed Employee Expenses.
  2. Enter Form 2106 in the field Form (Ctrl+T).
  3. Make a note of which Activity number you've chosen by looking at the Activity box at the top of the left-hand column.
  4. Enter any expenses relating to meals, entertainment, travel, etc, if applicable.  Leave the vehicle information sections blank.
  5. Go to Screen 22, Depreciation.
  6. Enter 6 or Form 2106 in the Form (Ctrl+T) field, and the appropriate activity number in the Activity name or number field.
  7. Enter Description, Date placed in service, Cost or basis, Method, and any Current section 179 expense in the Federal Depreciation section.
  8. Scroll down to or select in the Sections list, Automobiles and Other Listed Property.
  9. Enter at least Current Year Total mileage and Business mileage, a in the field 1 = force actual expenses, 2 = force standard mileage rate, and applicable Actual Vehicle Expenses.

This can be entered in the following screens:

  • Screen 30, Vehicle / Emp. Bus. Expense in the Vehicle Expenses section under Actual Expenses.
  • Screen 22, Depreciation, in the Automobiles and Other Listed Property section under Actual Vehicle Expenses.
  • Screen 23.2, Direct Input (continued), in the Part V, Section B - Listed Property section under Actual Vehicle Expenses.

In Inclusion Amount (enter as positive), enter in full (and as a positive number) any lease inclusion amount associated with this vehicle. The inclusion amount must be manually calculated. Refer to IRS Form 2106 instructions or IRS Pub. 463 for more information on inclusion amounts.

If the actual expense method is used, this entry is deducted from the entry in Vehicle Rent or Lease Payments. The program applies the vehicle's business use percentage to the result, and deducts the amount on the applicable form or schedule.  The business use percentage is calculated based on entries in Total Mileage and Business Mileage located in this input section.

To link a vehicle from Screen 30, Vehicle / Employee Business Expense (2106) to a Schedule C on Screen 16, Business Income, an activity must already be entered on Screen 16.

To generate Schedule C, line 9:

  1. Go to Screen 30, Vehicle/Employee Business Expense (2106)
  2. Click on the Form (Ctrl + T) drop down menu.
  3. Select Schedule C.
  4. Click on the Activity name or number (Ctrl + T) drop down menu.
  5. Select the applicable activity. Note: If there is no "Principal business or profession" entered on Screen 16, it will be referred to as "Schedule #."
  6. Scroll down to the Vehicle Information section.
  7. Check any boxes that pertain to this vehicle.
  8. Enter the Description of vehicle.
  9. Enter the Date placed in service.
  10. Enter the Total mileage.
  11. Enter the Business Mileage information.
  12. Scroll down to the Actual Expenses subsection.
  13. Enter the applicable amounts.

Lacerte will optimize between the Mileage and Actual expenses.

  1. On the Detail tab, go to Screen 22, Depreciation (4562).
  2. Select the Asset that contain the Vehicle Expenses from the left-hand column.
  3. Scroll to the Federal Depreciation section.
  4. Find the General subsection.
  5. Click the down arrow for the field "Form (Ctrl+T)" and select Schedule C..
  6. Click the down arrow for "Activity name or number" and choose the correct Schedule C name.
  7. Verify that this vehicle has not been entered in Screen 30, Vehicle/Employee Business Expense (2106).
Lacerte Tax

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