The following steps will guide you through entering mileage or actual expenses on a depreciated vehicle to be reported on a Schedule C, E, or F. For Schedule C filers, this information will also flow to the Schedule C, Part IV, or Form 4562, Part V, whichever is applicable.
Follow these steps to enter vehicle information:
- Go to the Input Return tab.
- On the left-side navigation menu, click Deductions.
- Select Depreciation.
- Enter any applicable information in the Quick Entry grid. The following entries are mandatory:
- Date placed in service
- Cost or basis
- Click the Details button.
- Select the Auto & Additional Info. section along the top of the input.
- Check any boxes that apply.
- Scroll down to the Automobile Mileage subsection.
- Enter the Total mileage and Business mileage. Both of these entries are mandatory to calculate the business use percentage.
- Scroll down to the Actual Vehicle Expenses section and enter any actual expenses that apply.
By default, ProConnect generates a Vehicle Expense Worksheet that calculates the standard mileage deduction and the actual expense deduction. The program will automatically choose the method which produces the largest deduction. Make an entry in 1=force actual expenses, 2=force standard mileage rate to override the automatic optimization.