Enter auto expenses
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.
Follow these steps to enter auto expenses.
- Go to the folder that applies to the vehicle.
- Select theAssettab.
- AddorEditthe asset.
- Enter theDescriptionandDate in servicein theAsset Detailwindow.
- Optional: Enter the cost, method, and life in theAsset Detailwindow if you select theOptimizeTax treatment. UltraTax CS optimizes between standard mileage and actual costs (step 8). The cost, method, and life aren't needed for leased vehicles. Since depreciation is a component of the standard mileage rate, you should enter the cost, method, and life for vehicles using the standard mileage method.
- Select theVehicle/Listedtab and select the vehicle type from theType of propertydropdown. This turns on the Current year usage section.noteIf you're entering information for a leased vehicle, select eitherLuxury AutoorVan or light truckfrom theType of propertydropdown.
- Complete the fields in the Current year usage section.
- Select theForm 4562 Vehicle Questionsin the Other information section, answer the questions in theForm 4562 Vehicle Questionswindow, then selectOK.
- Enter the mileage to compute the business use percentage.
- In the Additional 1040 vehicle information section, selectOptimize,Standard mileage, orActual costsand enter expenses in the fields.noteUltraTax CS defaults to theOptimizetax treatment only in the 1st year the vehicle is placed in service. You can selectActual costsorStandard mileageto force a different tax treatment.
- For leased vehicles only, enter the lease payments in theVehicle rentalsfield. SelectLease Inclusionin the Additional 1040 vehicle information section to open theLease Inclusion Calculationwindow. Enter the date the lease began and the fair market value, then selectOKto complete the calculation.
