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bvjh
Level 2

Account Mapping to Schedule C Tax Line for Section 179 Expense

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.

Solved
Best answer December 10, 2018

Best Answers
SkinnyRaven
Level 8

Account Mapping to Schedule C Tax Line for Section 179 Expense

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

View solution in original post

14 Comments 14
SkinnyRaven
Level 8

Account Mapping to Schedule C Tax Line for Section 179 Expense

The tax lines available are driven by your business type and the tax form selected in your preferences.
bvjh
Level 2

Account Mapping to Schedule C Tax Line for Section 179 Expense

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!
Rustler
Level 15

Account Mapping to Schedule C Tax Line for Section 179 Expense

@ 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.
RekaUjj
Level 1

Account Mapping to Schedule C Tax Line for Section 179 Expense

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
bvjh
Level 2

Account Mapping to Schedule C Tax Line for Section 179 Expense

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!
RekaUjj
Level 1

Account Mapping to Schedule C Tax Line for Section 179 Expense

You do not necessarily have to map all the accounts in QB. So you can just set up a Depreciation Expense and an Accumulated Depreciation contra-fixed asset account, then record a journal entry debiting the expense and crediting the Accum. Deprn, the way how Rustler explained in his reply.

Reka
GWilliams01
Level 2

Account Mapping to Schedule C Tax Line for Section 179 Expense

That is not correct. Check out QB desktop, edit the Depreciation Expense for tax line mapping.

marlenaya
Level 1

Account Mapping to Schedule C Tax Line for Section 179 Expense

I have the same problem. 

Jdds
Level 1

Account Mapping to Schedule C Tax Line for Section 179 Expense

@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!

jdds1
Level 1

Account Mapping to Schedule C Tax Line for Section 179 Expense

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!

smackauf
Level 1

Account Mapping to Schedule C Tax Line for Section 179 Expense

I don't know about the original poster but I AM pulling my info into Turbo Tax and it isn't right. SO... what is the tax mapping line for Depreciation Expense??

1984s
Level 2

Account Mapping to Schedule C Tax Line for Section 179 Expense

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

imtori
Level 1

Account Mapping to Schedule C Tax Line for Section 179 Expense

I came here looking for the same type of question. The answers here are not addressing the question. In the QBO accountants version in "Prep for Taxes" under the tax mapping tab- you choose the software you are going to pull the information into- I am confused as to why TurboTax isn't one of the options since it is under the Intuit umbrella- but I chose ProSeries- because it seems to have all the forms involved for tax mapping as opposed to ProConnect which only has the schedule c ONLY- no home office, etc- but neither seem to have mapping for the depreciation form- I have to assume then that these accounts remain unmapped and then you manually add them to the tax return? I am also surprised there are no replies here from QB or Intuit clarifying the issue. 

Jeff_S
QuickBooks Team

Account Mapping to Schedule C Tax Line for Section 179 Expense

TurboTax is not integrated with QuickBooks Online Accountant (QBOA) for tax preparation because they target different user groups, @imroti. Allow me to explain in further detail.

 

TurboTax is tailored for individual taxpayers with its user-friendly interface for personal tax filing, whereas QBOA is designed for accountants and tax preparers who need more robust tools for managing multiple clients and complex tax scenarios.

 

Currently, QBOA supports software such as Intuit ProConnect Tax, Intuit Lacerte Tax, and Intuit ProSeries Tax, all tailored for professional use with features like extensive form libraries and multi-client management. This focus ensures that professionals have the necessary tools for effective tax preparation.

 

You can visit this link for further comparison details: Comparing Lacerte and ProSeries and ProConnect Tax.

 

Also, if you want to use TurboTax in the future, refer to this article: QuickBooks Live Tax in QuickBooks Online.

Moreover, you can elevate your financial management to new dimensions with the guidance of our Explore QuickBooks Payroll team. Our experts excel at refining your financial processes and imparting personalized advice that aligns with your business objectives. A click is all it takes to embark on a journey toward financial excellence.

 

Each product offers distinct features and tools, @imroti. Lacerte and ProSeries are more comprehensive and suited for complex tax situations, whereas TurboTax is more user-friendly for straightforward tax filing. Knowing these functionalities can improve efficiency and accuracy in tax preparation. If you have further questions or need assistance, please reach out. Wishing you success in your tax-related endeavors!

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