Entering auto expenses (1040)

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You can enter auto information in any of the following folders: Business, Rent & Royalty, Farm, Farm Rental, K1 1065, 1120S, Itemized Deductions, or Non Calculating. To enter auto expenses:

  1. Select the Asset tab in the applicable folder. (See Asset module overview for details.)
  2. Click the Add button in the Asset List window.
  3. Enter the description and date placed in service in the Asset Detail dialog.
  4. Optional: Enter the cost, method, and life in the Asset Detail dialog if you will select the Optimize Tax treatment to have UltraTax CS optimize between standard mileage and actual costs (step 8). The cost, method, and life are not required for vehicles that are leased. Since depreciation is a component of the standard mileage rate, the cost, method, and life should be entered for vehicles using the standard mileage method.
  5. Click the Vehicle/Listed tab and select the vehicle type from the Type of property drop-down list to enable the Current year usage group box.

    If you are entering information for a leased vehicle, you must select either Luxury Auto or Van or light truck from the Type of property drop-down list.

  6. Complete the fields in the Current year usage group box.
  7. Click the Form 4562 Vehicle Questions button in the Other information group box, answer the questions in the Form 4562 Vehicle Questions dialog, and then click OK.
  8. In the Additional 1040 vehicle information group box, click the Optimize, Standard mileage, or Actual costs Tax treatment option and enter expenses in the applicable fields.

    Note: UltraTax CS defaults to the Optimize Tax treatment only in the first year the vehicle is placed in service, but you can select Actual costs or Standard mileage to force a different Tax treatment.

  9. For leased vehicles only, enter the lease payments in the Vehicle rentals field. Click the Lease Inclusion button in the Additional 1040 vehicle information group box to open the Lease Inclusion Calculation dialog. Enter the date the lease began and the fair market value, and then click OK to complete the calculation.
  10. Click Done to save the asset information.

Related topic: Automobile expense FAQs

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