Crank Posted January 24, 2013 Report Share Posted January 24, 2013 I have a vehicle that uses the standard mileage deduction for a low amount of miles (<1000) and I also need to use form 4562 for some sec179 property. If you have form 4562 then the program grays out the standard mileage on SchC and requires the mileage to be put on the vehicle worksheet of 4562. The problem is that when you do that, even though you select "standard mileage deduction" it requires you to enter a depreciation method and lists the car as a depreciable asset. I can put a value of $1 in the field to avoid the deprectation but the autobile details still appear on the 4562 with $0 depreciation and I dont want this to throw any red flags. Does anyone know how to handle this situation? Quote Link to comment Share on other sites More sharing options...
Crank Posted January 24, 2013 Author Report Share Posted January 24, 2013 Has anyone experienced this issue? It is significant that you cant do a "standard mileage deduction" on form 4562 without selecting a depreciation method resulting in a depreciable asset being created. If you input the info directly on pg 2 of schC (with a form 4652 attached) it is ignored resuling in $0 on SchC. Quote Link to comment Share on other sites More sharing options...
Kea Posted January 25, 2013 Report Share Posted January 25, 2013 Hi Crank, I agree that is a significant issue. I'm holding off on my program testing until it sounds like most of the bugs are out. Have you tried e-mailing Doug? Sorry I couldn't be much help. Quote Link to comment Share on other sites More sharing options...
Crank Posted January 25, 2013 Author Report Share Posted January 25, 2013 Thanks Kia. I emailed the lead tech manager Andy a few minutes ago Quote Link to comment Share on other sites More sharing options...
W-tax Posted January 25, 2013 Report Share Posted January 25, 2013 Sent a few emails to them, never receive any response. don't expect they will reply. Only response here, they don't want us to spread their bad business practice. Hi Crank, I agree that is a significant issue. I'm holding off on my program testing until it sounds like most of the bugs are out. Have you tried e-mailing Doug? Sorry I couldn't be much help. Quote Link to comment Share on other sites More sharing options...
Don in Upstate NY Posted January 26, 2013 Report Share Posted January 26, 2013 I believe the program is functioning correctly in this instance. The instructions for Schedule C clearly say that if a 4562 is required for some reason, then any mileage information (including mileage using the standard rate) must be entered on that 4562 and not on Part IV of the Schedule C. The instructions for the 4562 in turn mandate that the full description of the vehicle (date of purchase, basis, convention, etc.) be entered as is required for all listed property. So yes, your 2005 Mazda SUV shows up on the second page of the 4562 even if you are using the standard mileage rate. Quote Link to comment Share on other sites More sharing options...
Crank Posted January 26, 2013 Author Report Share Posted January 26, 2013 But you have to put in a cost of $1 to avoid it calculating depreciation on the vehicle that you are claiming the standard mileage rate. You must also choose a deprecitaion method. That cant be correct. Quote Link to comment Share on other sites More sharing options...
Don in Upstate NY Posted January 26, 2013 Report Share Posted January 26, 2013 I withdraw my comment - it is screwed up. It's bringing the standard mileage expense to Schedule C line 9 AND twice the depreciation to line 13. Setting the basis to $1 works, but is an obvious kludge. (Up with which I shall not put.) Quote Link to comment Share on other sites More sharing options...
Roberts Posted January 26, 2013 Report Share Posted January 26, 2013 I can't imagine doing a return and having to check to see if the software is doing the math correctly. Oh wait, I'm pretty sure that's the fault of Congress passing laws late. Never mind. Quote Link to comment Share on other sites More sharing options...
Crank Posted January 28, 2013 Author Report Share Posted January 28, 2013 I emailed Andy Vongdara [email protected] TRX R&D Tax Software Analyst and Account Manager 855-880-1040 ext 3515 about this issue after my tech support call about it on 1/23. I got a response today saying to call tech support. Quote Link to comment Share on other sites More sharing options...
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