Car purchase by LLC
My LLC purchased a car this year to be used for business purposes. What do I need to do on my tax returns to maximize the tax credit?
Best Answer
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Yes. If you select the actual deduction method for the vehicle, our software will calculate the depreciation for you.
Answers
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Is the LLC a sole proprietorship? If so, this vehicle will be entered in the Income tab > Business Income (Schedule C) section. After you have entered some basic info for your business, you will see a "Vehicle Expenses" sections. This section will have various boxes for you to fill in to ensure that you receive the greatest deduction.
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This is a sole proprietorship. Will the "Vehicle Expenses" sections properly handle calculating the depreciation expense for the purchase cost? Thank you.
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Yes - FreeTaxUSA will handle all calculations for you including depreciation.
