Schedule C Auto entries

Question

I use Drake software for those that use it. I have a client that does Drive-away. That means he transports  client trucks from one point to another, meaning he does not own a truck. On his 1099 schedule C the Drake Software requires: make and model and date placed in business. I don't have that information. Any ideas?

MatthewD · Answer

Hi Alfie,

I suggest that you use the Miscellaneous Expense section at the bottom of the Common Expenses to enter gas for car you don't own or lease.

Yes, do not use the standard mileage expenses for a car you do not own or lease.    Enter gas, insurance, tolls, repairs, etc for a car you do not own, but used for business.

See this article on this topic in the community:

https://community.freetaxusa.com/kb/articles/224-how-do-i-report-a-car-rental-as-a-business-expense?

Alfie · Answer

https://community.freetaxusa.com/discussion/comment/6215#Comment_6215

Do you know under which part of the Common Expenses section I should use to enter gas costs for a car I don't own/lease? And is it alright not to enter anything in the vehicle section, such as mileage? From what I had read online, I've been worried I'm required to report that. But if I don't own the car, it should be fine not to enter vehicle expenses on the Schedule C Auto Entries?

MatthewD · Answer

Hi Nyasons,

When you do not own a vehicle, but use it in your business, you may deduct the actual expenses in the Common Expenses section when entering the Schedule C.  This would be the same if you were renting a vehicle, driving a barrowed car on in this case, car transport drive-away. The make and model are not required in FreeTaxUSA.

For example, the following Vehicle expenses would be entered in the Common Expense section.

- Fuel

- Insurance

- Other transport related expense