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Solved

Depreciation of Business Asset (Car) Allocation to LLC (Limo Service) and/or Contractor (Uber/Lyft) Work

Forum|Forum|1 year ago
November 18, 2024
1 reply
0 views

If I use a car for limo service part of the time and as a contractor for Lyft and Uber how should I allocate the depreciation expense for deduction? Should I use the percentage used for business and contracting as a divisional allocation or claim the deduction 100% from one or the other? I was going to combine the business and contracting work both on personal taxes rather than seprate the business tax.

Best answer by AmeliesUncle

If you are reporting the Limo service as a separate business from the Uber/Lyft, you would enter the miles for each business separately and the program will give the prorated deduction to each business.

From strictly a tax viewpoint, it sounds like they could be combined as one business (assuming the LLC is only one member and has not made an election to be taxed as a corporation). But depending on the details, that could possibly reduce legal liability benefits of the LLC (you would want to consult your business attorney if that is a concern).

AmeliesUncleAnswer

If you are reporting the Limo service as a separate business from the Uber/Lyft, you would enter the miles for each business separately and the program will give the prorated deduction to each business.

From strictly a tax viewpoint, it sounds like they could be combined as one business (assuming the LLC is only one member and has not made an election to be taxed as a corporation). But depending on the details, that could possibly reduce legal liability benefits of the LLC (you would want to consult your business attorney if that is a concern).