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Few questions

Forum|Forum|3 years ago
March 6, 2023
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Hi,

I am new to doing taxes all by myself, I am trying and learning, I have the following questions:

Q1. I purchased a new vehicle in 2022 for business purposes, I wanted to partially deduct (20%) each year the value of the vehicle. This year I just added 20% of the purchase value in 179 and I am hoping I can add the same for the next 4 years.

Please correct me if I am wrong.

Q2. I issued 1099 to one of the contractors, I am wondering where to report it in the TurboTax? While filling expenses, TurboTax asked if I paid more than $600 and need any help preparing 1099, I said no (as I already used pdf document from IRS site to give 1099 when I paid him) and I just reported the amount as expenses without entering contractor's EIN!

Q3. I had another SMLLC, sometime in March 2022, I submitted the termination to the franchise tax board in California, but I have not found any option to mention that while filing taxes in TurboTax (like, I get an option for a car if I stopped using or sold the car). Is there a way to mention that I have terminated it? or I will just not report it from next year while filing?

Thank you

TurboTax Live Self-Employed Online

Best answer by JohnB5677

Q1. I purchased a new vehicle in 2022 for business purposes, I wanted to partially deduct (20%) each year the value of the vehicle. This year I just added 20% of the purchase value in 179 and I am hoping I can add the same for the next 4 years.

If you're using one of the TurboTax products, you will start with the business or self-employment section. Scroll to the Vehicle section and select it.

Follow the interview. Your deductible amount will be calculated based on usage and miles driven. Business Use of Vehicles

Q2. I issued 1099 to one of the contractors, I am wondering where to report it in the TurboTax? While filling expenses, TurboTax asked if I paid more than $600 and need any help preparing 1099, I said no (as I already used pdf document from IRS site to give 1099 when I paid him) and I just reported the amount as expenses without entering contractor's EIN!

That's okay, the IRS has the 1099 information. This is reported under Contract Labor. How do I enter contract labor on my 2022 return?

Q3. I had another SMLLC, sometime in March 2022, I submitted the termination to the franchise tax board in California, but I have not found any option to mention that while filing taxes in TurboTax (like, I get an option for a car if I stopped using or sold the car). Is there a way to mention that I have terminated it? or I will just not report it from next year while filing?

You need to select that you sold or disposed of it in TurboTax

Under the business tab> business income and expenses> Profit or loss for business.
Select the business that you want to eliminate and edit the information
Business summary page select business profile
Select "disposed of business in current year" and enter your information. Select "sold/disposed on business in 2015" even if you got rid of the business in a prior year. (You will need to select this option even though you actually closed it in 2013. This is because you haven't closed it with the IRS until you file a final Schedule C (see screenshot)

This will generate a final Schedule C for the current year and you should not have any more information about this business flowing through to next year.

View solution in original post

fanfare

Employee

Start a Schedule C for your business.

then go to depreciation for a vehicle it will tell you how many years you use to depreciate a vehicle.

JohnB5677Answer

Q1. I purchased a new vehicle in 2022 for business purposes, I wanted to partially deduct (20%) each year the value of the vehicle. This year I just added 20% of the purchase value in 179 and I am hoping I can add the same for the next 4 years.

If you're using one of the TurboTax products, you will start with the business or self-employment section. Scroll to the Vehicle section and select it.

Follow the interview. Your deductible amount will be calculated based on usage and miles driven. Business Use of Vehicles

Q2. I issued 1099 to one of the contractors, I am wondering where to report it in the TurboTax? While filling expenses, TurboTax asked if I paid more than $600 and need any help preparing 1099, I said no (as I already used pdf document from IRS site to give 1099 when I paid him) and I just reported the amount as expenses without entering contractor's EIN!

That's okay, the IRS has the 1099 information. This is reported under Contract Labor. How do I enter contract labor on my 2022 return?

Q3. I had another SMLLC, sometime in March 2022, I submitted the termination to the franchise tax board in California, but I have not found any option to mention that while filing taxes in TurboTax (like, I get an option for a car if I stopped using or sold the car). Is there a way to mention that I have terminated it? or I will just not report it from next year while filing?

You need to select that you sold or disposed of it in TurboTax

Under the business tab> business income and expenses> Profit or loss for business.
Select the business that you want to eliminate and edit the information
Business summary page select business profile
Select "disposed of business in current year" and enter your information. Select "sold/disposed on business in 2015" even if you got rid of the business in a prior year. (You will need to select this option even though you actually closed it in 2013. This is because you haven't closed it with the IRS until you file a final Schedule C (see screenshot)

This will generate a final Schedule C for the current year and you should not have any more information about this business flowing through to next year.

View solution in original post

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