Posted on 04/09/2017 11:32:35 AM PDT by SteveH
why is an auto i used for my business unexpectedly showing up in form 8824 like-kind exchanges in turbotax?
I would think that would be a question for TurboTax as it is their software.
I would look first for “pilot error”.
They've got a help section, forms section, online forum, and links to IRS forms.
It is buggy as hell. It brings up the farm stuff for me. Just skipped it and moved on.
i submitted the question to turbotax for a callback.
they called me back and advised to delete the entire form 8824.
thanks to everyone for the responses!
Go back into the auto itself and check your boxes and answers again. I’m imagining you sold it and hit the wrong response. If you can’t find your error, start over and make sure your responses are right.
apparently so, though i have had luck in recent years up until this year.
apparently the problem was triggered by me trading in an auto that i used for business in 2015 and buying a new auto.
another problem (which appears to be a real bug) is that if i make two federal estimated tax payments for the 4th quarter and i use the date 1/17/2017 as the date paid, it only records and uses the first payment i entered, and ignores the second payment i entered. this can lead to incorrect results (in the fed’s favor) if uncorrected. the workaround is to add manually the two or more payments and enter only the total payment as one single payment.
scary!!
TT got to be too troublesome and buggy for me three years ago, and I went to a local CPA to have my taxes done. Best $700 I spent all year. The CPA is literally a lifelong friend of a neighbor and I trust him. His attitude toward the messes from Turbotax that people bring him is the trash bin. So glad I don’t have to fret over answering TTs loaded questions anymore to get he right answer.
TC
To the OP.
Did you trade in the vehicle? Let me tell you that the rules in this area are really complicated. Well, the concept is not all that difficult, but working through it is hard enough in the software the professionals buy. In TT it must be a real mess.
I don’t know how well I can explain this - but in most cases when you trade in an asset used for business purposes you end up with TWO depreciable assets (for tax purposes).
One asset is based on the remaining un-depreciated business portion of your trade-in.
The other asset is the remainder of the cost of the new asset.
From an accounting perspective this makes some sense.
This post will probably result in lots of hate at Congress and the IRS. Just remember, there are some things that you can do yourself. But not everybody wants to do their own plumbing, brain surgery, hair cut, auto repair, appendix removal, plastic surgery, embalming.
You get the idea?
A trade in on a business vehicle IS a like-kind exchange. Read the pubs. PS you probably don’t want to be your own physician either. Enjoy the audit.
hey guys,
it is a personal passenger vehicle that i just used for commuting to a consulting job for a few months. i had it for several years before then. traded it for a new personal passenger vehicle that i am also using for occasional commuting to a consulting site. ok, i guess i could use 8824 (why did TT tell me to delete the form, yikes).
i always end up in the TT audit risk green band (very low audit risk). hopefully i will continue in that this year. this is the 2nd year i worked as independent self employed contractor. i did not deduct vehicle mileage for my 2015 taxes since i only worked in that mode for 2 months in 2015. yikes, yikes, yikes.
now i am stuck on a carryover entry for a past return-1 (2015, no doubt) worksheet. “More info about a past tax return-1 must be entered. It looks like the total amount you entered from your 2015 tax return is less than the individual payments you made that year (estimated tax, ...). It should be higher than, or at least equal to your payments.”
well typing this makes the answer kind of obvious i guess.
i’m going to embalm myself after i die. then i will incinerate myself to cover up the evidence of unlicensed embalming, so i don’t get fined. lol! seriously, this stuff should be more straightforward. hmmm, will study more...
If you just do cents-per-mile for business use of personal vehicle this trade-in and like-kind exchange does not become an issue. The cents-per-mile deal is a rip-off for most vehicles.
BTW - I do want to be my own BARTENDER. Will anyone else drink to that?
So why did you reply to me?
I said the same thing, minus all the accounting jargon. It was worth it to me to pay the brain su rgeon. In future, please direct your replies to your target.
Thanks.
TC
i have to hire an accountant to protect myself from my government. only in the USA! i would rather hire a bartender to make dry vodka martinis for me. shaken, not stirred, of course.
I replied to you just to see how touch that Leatherneck is. And because I don’t know what the heck you mean by “accounting jargon”.
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