bought a used truck for farm use. why won't TT allow me to enter actual expenses

Forum|Forum|3 years ago
March 9, 2023
1 reply
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In 2022, we traded in a 2002 truck for a 2020 used truck. Each was used 75% for farm use. I understand that I have a gain on the trade in value of the 2002 truck since there is no more Like Kind exchange for non real estate. but when I enter my information for the purchase of the 2020 truck, and I have actual expenses that far exceed the standard mileage deduction, TT ignores the actual expenses and tells me that my business deduction is only equal to the standard mileage deduction. Why? And is there a way to fool TT?

TurboTax Home & Biz Windows

AbrahamT

Try this workaround

When you get to this screen

don't check off the box I stopped using this vehicle in 2022. When I entered in all the information and checked off this box, I came to the same conclusion like you. TT ignored the actual expenses no matter how high they were. Once I unchecked the box, I was allowed the use of actual expenses. See if this works for you as well. I invite you to try us back and let us know what happens so we may figure out how to proceed further.

Just continue hitting yes,yes

Input the business mileage and personal mileage

then to this screen, hit yes

then the next screen will allow you to put in the actual expenses followed by the next screens

which will allow you to enter information about the use of your new car, the usage, cash paid with the trade in, date acquired followed by how much you paid for the car and so on and so forth. Also, make sure that the date you acquired the car doesn't come after the date you started using it for work as shown in the 1st screen on top.

Lots of luck!

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kfarmitAuthor

Still having trouble. Here is everything I am doing. I am editing the info for the 2002 truck traded off. I started using it 11/30/2002. I don't check the box to say that I stopped using the vehicle. Yes, I own the vehicle. Yes, it was available for personal use. Yes, I have another vehicle available for personal use. No, i don't document work miles. I am still forced to enter total mileage, business mileage and commter mileage. (I use 100 total, 75 business hoping to force 75% of actual expenses deducted for farm). 0-4 vehicles used on the farm. Actual truck expenses for this vehicle only $70. Vehicle used by more than 5% owner and not used for hire. Did not purchase new. No trade in at the time of purchase in 2002. total vehicle deduction calculated is $0.

new truck purchased and started using 3/5/22. exact same info regarding personal use, owner, bought used., used by 5% owner. Same mileage selections. Actual expenses for this truck $5400. It was purchased with a trade in. Purchase price $73,000. TT calculated deduction at $44 based on 75 miles of use rather than actual expenses that I entered. Even though I told TT I wanted to compute using actual expenses. what am I doing wrong?

DaveF1006

You have the option to use actual expenses for this year for your truck. Just remember this, if you select this for this year, you must always use actual expenses from this point forward for as long as you use this truck for your farm.

Now, as far as addressing your issue, go to the forms mode in your return and go to car and truck worksheet. Go to part 4 where it addresses standard mileage vs actual expenses. Make sure actual expenses is checked there.

Let us know if this works.

@kfarmit

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