Screen Auto - Auto Worksheet (1040)

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Overview

Enter all car / truck expenses and relevant vehicle information in the asset module. UltraTax CS processes the information and transfers it to the appropriate screens and ultimately, forms and worksheets (that is, the Auto Worksheet, Form 4562, Schedule C, Page 2, and so on). Information you enter in the asset module is proforma'd from year to year.

Electronic filing note: When entering data for electronic returns, you need to follow specific IRS guidelines to ensure that the return will not be rejected. For details, see the "data-entry guidelines" section of General and input screen-specific topics for electronic returns.

When not entering automobile information in the asset module, use Screen Auto to enter vehicle information. However, summary information must be entered on other screens in order to correctly process the return. When this method is used, UltraTax CS does not proforma historical data.

The data you enter generates an Auto Worksheet that calculates the deductible car and truck expenses based upon the standard mileage rate method, the actual cost method, or an optimization of the two methods. Automobile information can transfer to Schedule C, Part 2; Schedule F; Schedule E, Page 1; Schedule E, Page 2; and Form 4835. The Auto Worksheet can be used to calculate the automobile expense for Schedule C cost of goods sold or a miscellaneous activity, but UltraTax CS does not transfer amounts to those activities. The calculated automobile expense should be entered directly in the activity's input screen. Do not use Screen Auto to enter vehicle information for Form 2106; use Screens 2106 and 2106-2 instead.

See also

Asset module transfer

Data entered in the asset module automatically transfers to the appropriate field(s) on this screen. UltraTax CS displays the transferred data in blue text. View example.

Transferred data in blue

You can overrule the transferred amount by entering the appropriate amount in any transferred field.

Notes

  • UltraTax CS does not overwrite an overruled fields with any subsequent asset module transfers.
  • Overruled field values will be used in the calculation of the return.
  • To restore the transferred amount, right-click and select Delete overrule.
  • To acknowledge an overruled field, right-click and select Acknowledge overruled data.

For more information on Overrules, please see Statements overview and Enabling notifications of overruled data.

Entering automobile data

This screen is not applicable and is not present when the summary asset detail method of data entry is selected, as indicated by the marked Enter asset detail information checkbox in the File > Client Properties > Advanced Properties button > Enter Asset Detail tab.

Entering automobile data directly in Screen Auto

We do not recommend that auto information be entered directly in Screen Auto, because some of the same information must be entered in Screen 4562 or in other screens. Vehicle questions and depreciation information do not transfer from the Auto Worksheet to Form 4562 or Schedule C. Nor do vehicle questions transfer from Form 4562 to the Auto Worksheet or Schedule C. Duplicate entries of vehicle questions and depreciation are necessary if data is entered directly in this screen.

Auto Information

Use this section to enter information to relate the Auto Worksheet to an entity and to answer vehicle questions for Schedule C, if applicable.

UltraTax CS uses these fields to gather and coordinate information for the business unit activity. For example, these fields enable UltraTax CS to link information (such as income or loss, sales, credits, and asset detail) for the activity. The table that follows lists the available forms and their applicable folder locations.

Folder Form description
Business Schedule C
Rent & Royalty Schedule E, Page 1
Farm Schedule F
Farm Rental Form 4835
K1 1065, 1120S Schedule K1 S-corp / Partnership

Because there are multiple forms available in the Itemized Deduction folder, enter the form information. The forms available in the Form field are listed in the table that follows and in the fieldview.

Form code Form description
Misc Miscellaneous
M Miscellaneous

Vehicles Information

The information that appears in these sections transfers from the asset module. Enter data directly in Screen Auto only when not using the asset module. See the overview of this screen for data entry methods.

UltraTax CS automatically transfers the method entered in the asset module to this field. It uses this field to calculate the business use percentage and personal miles. Use this field to indicate which method UltraTax CS should use when calculating the deductible car and truck expenses. When you enter 1 or leave this field blank, UltraTax CS optimizes between the standard mileage rate method and the actual cost method. Enter 2 to calculate the deductible vehicle expense using the actual cost method. Enter 3 to calculate the deductible vehicle expense using the standard mileage rate method.

Note: The ability to optimize a 1040 luxury auto between standard mileage and actual cost is limited to the first year the auto is placed in service. This is because changing between the two options after the first year may or may not be allowed and may entail adjusting the basis and life of the asset.

UltraTax CS automatically transfers total miles entered in the asset module to this field. It uses this field to calculate the business use percentage and personal miles.

UltraTax CS automatically transfers commuting miles entered in the asset module to this field and uses this field to calculate the business use percentage and personal miles.

UltraTax CS automatically transfers business miles entered in the asset module to these fields. These fields are used to calculate the business use percentage and personal miles.

UltraTax CS automatically transfers answers entered in the asset module to these fields. Data entered in these fields is printed on Schedule C, Page 2 if there is no Form 4562 printed for the activity.

UltraTax CS transfers the amount entered in the asset module to these fields. These expenses are allowed in full whether the standard mileage or actual expense method is used.

UltraTax CS transfers the amount entered in the asset module to these fields. The percentage of these expenses allocable to business use are included in the actual expense calculation.

UltraTax CS transfers the amount entered in the asset module to this field. The business portion of these expenses is included in both the standard mileage and actual expense method calculation. The non-business portion of personal property taxes transfers to Schedule A. If the same vehicle appears on more than one Auto Worksheet, do not enter amounts for that vehicle in the Property taxes field. Enter the remaining portion of personal property taxes directly in Screen A.

UltraTax CS transfers the amount entered in the asset module to these fields. UltraTax CS subtracts the lease inclusion amount from this amount and multiplies the result by the business percentage as part of the actual expense calculation.

UltraTax CS transfers the amount entered in the asset module to these fields. UltraTax CS subtracts this amount from the vehicle rental amount and multiplies the result by the business percentage as part of the actual expense calculation.

UltraTax CS transfers the amount calculated in the asset module to these fields. This amount is used in the actual expense calculation. Please note that this amount does not transfer to any other forms or schedules. If you do not use the asset module, you must enter any applicable vehicle depreciation in Screen 4562 or on the entity's input screen.

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