quick question and it is simple for you

[helow]

TP uses 2 vehicles for business (80% each for delivering computers.) TP wants to use the std mileage rate. My question is if this option is used will TP loose the ability to claim other expenses such as depreciation. My other question is, where do you enter interest paid on the vehicles. Line 9e of the vehicle expenses tab of the sh-C is not active.

Thanks

Jeff

[zeke]

Answer to first question = Yes.

Answer to secont question = See answer to first question.

[Pacun]

TP uses 2 vehicles for business (80% each for delivering computers.) TP wants to use the std mileage rate. My question is if this option is used will TP loose the ability to claim other expenses such as depreciation. My other question is, where do you enter interest paid on the vehicles. Line 9e of the vehicle expenses tab of the sh-C is not active.

Thanks

Jeff

You take mileage or actual expenses which include depreciation and interest.

[RitaB]

TP uses 2 vehicles for business (80% each for delivering computers.) TP wants to use the std mileage rate. My question is if this option is used will TP loose the ability to claim other expenses such as depreciation. My other question is, where do you enter interest paid on the vehicles. Line 9e of the vehicle expenses tab of the sh-C is not active.

Thanks

Jeff

Jeff, you enter interest expense on Line 6c of the Vehicle worksheet.

Yes, you use either: 1) standard mileage rate and interest expense, or 2) depreciation and actual expenses, including interest expense. Either way, they have to keep up with mileage figures. If this is the first year of business use, and you elect to use standard mileage rate, you can switch to depreciation in future years. I never tell clients this. It's messy to me; you have to adjust for the depreciation factor that is included in the SMR. So, I just make them pick one and stick with it.

[kcjenkins]

It does not limit you from taking depreciation on other assets, but it does mean you do not take depreciation on the vehicles. The standard rate includes a portion for depreciation.

[RitaB]

It does not limit you from taking depreciation on other assets...

Thanks, KC, it never even crossed my mind that there might be a question there. It is so good to have lots of people who think differently, isn't it?

[kcjenkins]

The way the original post was worded made me think that I'd better make that clear. ;~)