2106 vehicle converted to Sch C

[joanmcq]

Client had 100% biz use vehicle (carpet cleaning truck) he owned and used as an employee in carpet biz (not his own biz). Got canned and started own biz with same truck. Had been using actual expenses and depreciating truck. Truck cost $6000 when he bought it from the employer (employer required employees to purchase truck) and had 4109 of acc. depreciation when converted to the Sch C biz. Do I use $1891 as the basis of the truck for the biz? Is there any gain loss? do I just dispose of vehicle in ATX and have it not calc gain/loss, and then just move it over to the Sch C asset entry at $1891 basis? Or should I just take a shower and go back to bed?

oK, after this addendum, shower and bed. I give up. I've had this as a qualified nonpersonal use vehicle, and used actual expenses on the vehicle worksheet in asset entry. Now the vehicle worksheet says to enter the expenses on the appropriate business form. Do not use vehicle worksheet. However, on the 2106, there doesn't seem to be a place to enter actual expenses, only mileage. Putting the vehicle expenses on the Sch C vehicle entry allows the depreciation to calc along with the standard mileage. Any answers?

[PapaJoe]

Just change it on the asset entry worksheet from 2106 to schedule c asset and continue as before.

[kcjenkins]

You can use 'Move Asset' to shift it over to the C instead of the 2106. Then, as to the issue of standard mileage or actual expense, continue whichever you were using before. If you were using std on the 2106, there is a check box on the bottom of the vehicle input tab, to check, so that it will calculate properly. If actual was used in first year, std rate should not be 'available'.

[joanmcq]

KC, I don't see any check box on the bottom of the vehicle input tab; there is only input for mileage on the 2106, and the yes/no boxes for 'do you have another vehicle' etc. On the asset entry, it won't let me enter ANYTHING on the vehicle worksheet; it tells me to enter it on the appropriate form. The vehicle info tab says it is only for listed property, if I change the type of vehicle to vehicle type 6 or 7 instead of type 2. Last year, all the actual expense info was on the 2106; now the 2106 worksheet says to use the asset entry form for actual expenses, and the asset entry tells me to use the 2106. HELP!!!!

Or maybe I should just make this a truck/ SUV over 6000 pounds. But it isn't correct, and I shouldn't have to do this. It worked last year!