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arkvalleyinfo
December 11, 2018
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Account Mapping to Schedule C Tax Line for Section 179 Expense

  • December 11, 2018
  • 3 replies
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Our company recently purchased a truck that we need to expense on our Schedule C tax line “Depreciation and Section 179 Expense Deduction”

 

I have tried to create an account to capture the Section 179 Expense line on our Schedule C.  When I map the account to a tax line, Schedule C Depreciation and Section 179 Expense Deduction is not an option in the drop down list.

 

Is there a way for me to map an account to this Schedule C tax line (or to Form 4562 which would then populate that line on Schedule C)?


Thanks for any advice you can offer.

    Best answer by SkinnyRaven
    The tax lines available are driven by your business type and the tax form selected in your preferences.

    3 replies

    S
    SkinnyRavenAnswer
    December 11, 2018
    The tax lines available are driven by your business type and the tax form selected in your preferences.
    A
    arkvalleyinfoAuthor
    December 11, 2018
    Agreed.  We chose 1040 tax form preference and have all the Sched C lines available for account mapping except this one.  Thanks for your input!
      1
      1984s
      March 2, 2022

      Where are you selecting this?  I'm in QB desktop Enterprise; I only have a tax 1099 preference.

      Rustler
      Rustler
      December 11, 2018
      @ bvjh
      you should have a fixed asset account for the truck, then a sub account, also fixed asset type called accumulated depreciation-truck

      at the end of the year you post a journal entry (regardless of whether you take section 179 or annual depreciation)
      debit depreciation expense
      credit accumulated depreciation-truck

      the truck and the associated depreciation account remains on the books until you dispose of the truck.

      QB does not do depreciation entries for you.
        J
        Jdds
        January 19, 2020

        @Rus Revisiting this, is this the correct approach:

         

        Upon purchasing the fixed asset, let's say a truck for $8,000:

        1. Credit "Fixed Asset:Truck" account for $8k

        2. Debit: Checking account for $8k

         

        3. Create "Accumulated Depreciation:Truck" account with no balance.

         

        Then, at the end of the year, the journal entry:

        4. credit "Accumulated Depreciation:Truck" account for $8k bringing the balance to -$8,000

        5. Debit "Depreciation Expense" account for $8,000.

         

        Correct?

         

        Then when I sell the truck, 

         

        6. Credit checking account for the amount made, and

        7. Debit Accumulated Depreciation:Truck by the amount made, leaving the balance

         

        What then do I do at the end of the year for the journal entry with that remaining balance in Acc. Dep. account? 

         

        Thanks!

        R
        RekaUjj
        December 11, 2018
        Additionally, the expenses for depreciation normally does not have a tax line in QB. Tax lines are needed only if you pull your QB information into TurboTax. This tax preparation software is supposed to take care of the depreciation calculation.

        Reka
        A
        arkvalleyinfoAuthor
        December 11, 2018
        My take away is that I should create a workaround to capture this transaction in QB for year end tax reporting because the software does not support the mapping option I am seeking.  Thanks for your input!
        M
        marlenaya
        October 2, 2019

        I have the same problem. 

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