How do I categorize the purchase of a work vehicle is QBSE?

Chris_S · ‎March 07, 2019

I'm currently using QB Self-Employed and I can't seem to figure out how to categorize the work van that I purchased, in full, for conducting my business.

There's the category "other vehicle expenses" which a vehicle is an asset not an expense. Then there's "other tools and equipment - asset" but a vehicle is not a tool. I guess it could be considered equipment.

In the other versions of QB it seems like you can just create a new category then create a journal entry. But if I'm not mistaken, you can't do either with QB Self-Employed.

I appreciate any feedback, as I was unable to solve this problem via internet searches and live chat.

Thank you.

MirriamM · ‎March 07, 2019

I appreciate your time bringing this concern to our attention, Chris_S,

I'm here to help share information on how QuickBooks Self-Employed (QBSE) handles the purchase of a work vehicle.

Currently, QBSE don't actually track vehicle cost but you have the option to enter that information in the Vehicle Info page.

To enter vehicle cost, here's what you'll need to do:

Click the Gear icon at the top beside 󠇗󠇗Help icon.
Under the Taxes column, select Vehicle info.
In the Vehicle info page, enter the vehicle cost in the How much did the vehicle cost? question.
Click Save.

For more information about vehicle deductions and mileage tracking, I'm attaching some helpful article that you can check:

If you need further assistance with the steps, you can always contact our Customer Care support. They have the necessary tools to walk you through in setting up.

To contact us, here’s how:

Sign in to your QuickBooks Self-Employed account.
Click Assistant at the top right.
Type talk to human.
Choose your preferred support method.

If there's anything else you need help with concerning QuickBooks Self-Employed, please let me know.

View solution in original post

MirriamM · ‎March 07, 2019

Thanks for your fast reply and providing me detailed information, Chris_S,

In QuickBooks Self-Employed, we can claim the items as assets when it is less than $2,500. The cost of your vehicle you’ve entered in the Vehicle info is just for recording. If you want to claim the cost of vehicle, you can enter it manually in TurboTax upon filing.

To know more about Business Assets in QBSE, here's a great resource that you can check: Schedule C and expense categories in QuickBooks Self-Employed.

Feel free to visit us again, if you have any other concerns recording assets in QBSE, I'm always here to help.

View solution in original post

MirriamM · ‎March 07, 2019

I appreciate your time bringing this concern to our attention, Chris_S,

I'm here to help share information on how QuickBooks Self-Employed (QBSE) handles the purchase of a work vehicle.

Currently, QBSE don't actually track vehicle cost but you have the option to enter that information in the Vehicle Info page.

To enter vehicle cost, here's what you'll need to do:

Click the Gear icon at the top beside 󠇗󠇗Help icon.
Under the Taxes column, select Vehicle info.
In the Vehicle info page, enter the vehicle cost in the How much did the vehicle cost? question.
Click Save.

For more information about vehicle deductions and mileage tracking, I'm attaching some helpful article that you can check:

If you need further assistance with the steps, you can always contact our Customer Care support. They have the necessary tools to walk you through in setting up.

To contact us, here’s how:

Sign in to your QuickBooks Self-Employed account.
Click Assistant at the top right.
Type talk to human.
Choose your preferred support method.

If there's anything else you need help with concerning QuickBooks Self-Employed, please let me know.

Chris_S · ‎March 07, 2019

Thank you, I appreciate the response.

Just to be clear, the business assets section in QBSE doesn't pertain to vehicle purchases/assets?

MirriamM · ‎March 07, 2019

It's good to hear from you again, Chris_S,

You are most welcome! It's my great pleasure to assist you with.

In line with your other concern, can you please verify which specific business assets section in QBSE you're referring to? Can you please provide some screenshot? This is for me to properly addressed your concern.

Looking forward to hearing from you.

Chris_S · ‎March 07, 2019

Hi MirriamM,

I wanted to send a screen shot but I can't really do that without showing all my info on the screen. So then I took a pic of the section I'm talking about and tried to attach to this message board but the file size was too big.

In QBSE you go to the navigation bar on the left side of the screen, then select "Taxes", then "Annual Taxes", then scroll down to you see "Business Assets".

This will show you any of the items that have been categorized as an asset (>200).

(The items have to categorized in the transaction section first before they show up in the "Annual Taxes" "Business Assets" mentioned above).

Then you can create a description and select the date the item was purchased / placed in service. Everything seems to be straightforward except the only category that could possibly fit in this case is "other tools and equipment >200". There's nothing saying vehicle.

A vehicle is a fixed asset but business asset is kind of the same thing.

Again, thank you for the response and I hope from what I've described above that you are able to get back to me with a solution.

MirriamM · ‎March 07, 2019

Thanks for your fast reply and providing me detailed information, Chris_S,

In QuickBooks Self-Employed, we can claim the items as assets when it is less than $2,500. The cost of your vehicle you’ve entered in the Vehicle info is just for recording. If you want to claim the cost of vehicle, you can enter it manually in TurboTax upon filing.

To know more about Business Assets in QBSE, here's a great resource that you can check: Schedule C and expense categories in QuickBooks Self-Employed.

Feel free to visit us again, if you have any other concerns recording assets in QBSE, I'm always here to help.

Folker · ‎August 22, 2019

Hi quickbooks just reading the above msgs.

I plan to privately purchase a 2nd UTE with some of my non income savings I put into my business account. Bank acc is linked quick books.

When I take that money out of the business QB is going ask me identify the transaction. What should it be categorised as? And would a private sale purchase of a 2nd work vehicle generate a gst credit?

Cheers

Charies_M · ‎August 22, 2019

Thanks for joining this thread, Folker.

In addition to my colleague's answer, vehicle is often categorizes as asset if this helps generate income for the business. However, In QuickBooks Online Self-Employed, we don't track assets but you may consider categorizing the amount that you've spent for the vehicle as Personal.

Let me share this article that briefly discusses when to categorize an item as asset: Schedule C and expense categories in QuickBooks Self-Employed.

For correct tracking purposes when filing your returns, you can visit this website: AnswerXchange.

I'd also recommend consulting your accountant for more expert advice in categorizing items.

Fill me in if you have additional questions and I'd be happy to answer them for you.

Braysher · ‎September 01, 2020

Thank you for all the information above.

I'll be claiming my new vehicle as an asset when I file this year but how do you categorize the down payment and loan payments in the Transactions panel when the vehicle is primarily used for work? Categorizing the down payment as either Business or Personal greatly effects my quarterly tax payment.

Charies_M · ‎September 01, 2020

It's good to see your post today, Braysher.

The category you've used for repayments has a different purpose. All expenses related to a loan are often categorised as Loan Repayments in QBSE.

Feel free to check out this article for more details: About SA103F Categories.

You can also refer to this article about Schedule C and expense categories in QBSE for the list of categories you can use in QBO.

To make sure the categories you used are accurate, I suggest reaching out to your accountant to seek professional advice. Or, you can post your questions here. There are available experts who can share their best practices with you.

If there's anything I can help you with, feel free to drop me a reply below. Hope you have a good one.

Topics

Training

Community

Resources

How do I categorize the purchase of a work vehicle is QBSE?