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vikkicheffings-h
Level 1

Car expenses being put under disallowed expenses, why,?

 
Solved
Best answer January 20, 2022

Accepted Solutions
Charies_M
Moderator

Car expenses being put under disallowed expenses, why,?

Thanks for checking this with us, vikkicheffings-h.

 

While we're not able to provide which category to use for a specific transaction, you should always work with your own accountant to confirm the specific operations and the data are managed properly for your tracking and reporting needs.

 

Since you don't have a tax advisor, Intuit offers "Find-a-ProAdvisor" service for business owners to connect with QuickBooks certified accountants and bookkeepers. Please see details in the link below:

Also, allow me to share these references for a list of categories that you can choose from:

More about the difference between Allowable and Disallowable Expense can be read in this article: Allowable and Disallowable Expenses.

 

Since you're new to QuickBooks Self-Employed, you might need these references for tips on your future task with QBSE, you can check out these helpful links: 

The Community is always open if you have other questions about categorizing transactions. I'll be around to help. Wishing you a great day ahead!

View solution in original post

5 REPLIES 5
GeorgiaC
QuickBooks Team

Car expenses being put under disallowed expenses, why,?

Hi vikkicheffings-h, thanks for joining the Community - can we check which specific category you're assigning the transactions against and if you use the automated mileage tracker to record any trips? 🧐

vikkicheffings-h
Level 1

Car expenses being put under disallowed expenses, why,?

Hi, I am not using the millage tracker it's turned off. I am putting my car and fuel expenses under car expenses but it has disallowed them. I have changed the category to travel and now they are allowed. This seems a little backwards seeing as I'm a driving instructor.

Carneil_C
QuickBooks Team

Car expenses being put under disallowed expenses, why,?

Help has arrived, @vikkicheffings-h. Allow me to share some details about disallowable expenses in QuickBooks Self-Employed.

 

A disallowable expense is a cost or expense that is not exclusively used for business purposes. Also, if an item for personal use appears on the same receipt as a business expense, it's part of the said expense.

 

It may be that some of the car expenses are not wholly used for business. That's the reason why it's showing under disallowable expense.

 

If they're solely for business purposes, let's ensure these transactions are categorised accurately. However, if you’re concerned with the categorisation of accounts, I suggest reaching out to your tax advisor.

 

You can read through this article to learn more about the Allowable and Disallowable Expenses.

 

Also, you can refer to this link to see different information on how QuickBooks Self-Employed tracks your business income and taxes.

 

If you have any further questions with any transactions in QuickBooks Self-Employed, please let me know and I’ll do everything I can to help here in the Community! 

vikkicheffings-h
Level 1

Car expenses being put under disallowed expenses, why,?

Thanks for your response, however when you say 'you'll take care of it' what exactly is meant? 

I don't have a tax advisor as I'm new to self employment and don't intend to use one at least until next year if I absolutely have to. 

These receipts were for fuel or car garages. Solely one item and were put under business only. I don't understand why this is being put as disallowed. Like I said as a driving instructor my main expenses will be fuel that I am entitled to claim back. I cannot continue using quick books if it will not serve this very basic need. 

Charies_M
Moderator

Car expenses being put under disallowed expenses, why,?

Thanks for checking this with us, vikkicheffings-h.

 

While we're not able to provide which category to use for a specific transaction, you should always work with your own accountant to confirm the specific operations and the data are managed properly for your tracking and reporting needs.

 

Since you don't have a tax advisor, Intuit offers "Find-a-ProAdvisor" service for business owners to connect with QuickBooks certified accountants and bookkeepers. Please see details in the link below:

Also, allow me to share these references for a list of categories that you can choose from:

More about the difference between Allowable and Disallowable Expense can be read in this article: Allowable and Disallowable Expenses.

 

Since you're new to QuickBooks Self-Employed, you might need these references for tips on your future task with QBSE, you can check out these helpful links: 

The Community is always open if you have other questions about categorizing transactions. I'll be around to help. Wishing you a great day ahead!

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