Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Client bought big rig under his name. He is using it for LLC. How do I depreciate the truck?

palmasservices
Level 2
Should I do a Schedule C for his truck depreciation as sole-proprietor (even thought there is no income) or can I depreciate it under the LLC (but is not under the LLC name).
0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
qbteachmt
Level 15

Then Lisa's guidance is applicable. There is no difference between your Person and their LLC. The LLC is disregarded.

*******************************
"Level Up" is a gaming function, not a real life function.

View solution in original post

6 Comments 6
Just-Lisa-Now-
Level 15
Level 15

What kind of LLC?   A Single member LLC is disregarded for tax purposes, its treated the same as a sole prop.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
qbteachmt
Level 15

Why would you title and insure something personally, if you formed an LLC? And if that is a partnership LLC (multi-member), then that really was a bad move. You would not have a Sched C unless this person contracts to their own multi-member LLC; is that what they did?

*******************************
"Level Up" is a gaming function, not a real life function.
0 Cheers
palmasservices
Level 2

A Single member LLC

0 Cheers
qbteachmt
Level 15

Then Lisa's guidance is applicable. There is no difference between your Person and their LLC. The LLC is disregarded.

*******************************
"Level Up" is a gaming function, not a real life function.
palmasservices
Level 2

It is a Single Member - LLC....  Would it be correct to depreciate it under the LLC (Schedule C), even though it is not under the LLC Name?

0 Cheers
qbteachmt
Level 15

"Would it be correct to depreciate it under the LLC (Schedule C), even though it is not under the LLC Name?"

There is no difference.

There is no "LLC" Sched C. The Sched C is a Form that is part of a 1040 Package. A 1040 tax filing is for the individual tax payer and your client happens to be running a business, by themselves, which is why you will use Sched C in addition to their 1040.

Forming a Limited Liability Company provides some business protection for an individual as far as State and Legal issues go. For Fed taxes, there is no separation: the person and the LLC are the Same Being. The Feds don't not have "LLC" entities for individuals.

What you might want to is direct your client to seek legal and insurance guidance as to whether the vehicle should be titled and insured differently. But you are doing Taxes, so for you, there is nothing different here. You have the same as Sole Proprietorship, because you have a Sole person running a business on their own.

*******************************
"Level Up" is a gaming function, not a real life function.