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Common questions about the vehicle standard mileage rate vs. actual expenses (1120-S/1065) in ProConnect Tax

by ProConnect Tax Online Updated 7 months ago

Where do I enter vehicle mileage information in the program?

You can enter Total, Business, and Commuting mileage in each module's Depreciation screen.

How is the mileage information used for each module?

  • In the Individual module, the mileage is used to compute the business use percentage for the vehicle via Form 4562, and a taxpayer can take the vehicle's actual expenses / standard mileage rate as an expense/deduction via Form 2106 or Form 2106-EZ.
  • In the business modules, the mileage is used only to calculate Business Use percentage on Form 4562, which is then applied to the current year depreciation.
    • That amount is then carried to the form that's linked to the asset (1065, 1120-S, 8825, 4562) as depreciation.

Can the standard mileage rate be used for partnerships or S corporations?

There's no direct mention of the standard mileage rate being allowed as an expense/deduction on a business return. Per the IRS Instructions for Form 4562:

  • If you're an employee deducting job-related vehicle expenses using either the standard mileage rate or actual expenses, use Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses, for this purpose.

Since Form 2106 isn't available in the S-Corporate or Partnership modules, the standard mileage rate or actual expenses for a vehicle won't be automatically calculated based on input in the Depreciation screen.

How do I take the standard mileage rate for a depreciable vehicle for a partnership or S corporation?

Calculate the allowable standard mileage deduction outside of ProConnect Tax. Then, select your tax type below for instructions on where to enter the amount.

  1. Go to Input Return Ordinary Income Deductions.
  2. Scroll down to the Other subsection.
  3. Enter the amount in Other deductions (click to expand).

OR

  1. Go to Input Return Ordinary Income Deductions.
  2. Enter the amount in the Auto and Truck expense field.

You may need to enter this information Other Expense on the correct screen for the specific form. For example, Form 8825 has entries on the Input Return Schedule K Rental Real Estate screen.

  1. Go to Input Return Ordinary Income Deductions.
  2. Scroll down to the Other subsection.
  3. Enter the amount in Other deductions (click to expand).

OR

  1. Go to Input Return Ordinary Income Deductions.
  2. Enter the amount in the Auto and Truck expense field.

You may need to enter this information Other Expense on the correct screen for the specific form. For example, Form 8825 has entries on the Input Return Schedule K Rental Real Estate (8825) screen.

Refer to IRS Pub. 535 for more information on deducting business expenses.

ProConnect Tax

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