Question

Jamal uses his 2019 dodge ram truck in his landscaping business. he also has a rental property about 100 miles away that he goes to once a month. he uses actual expenses. on what form or forms will he report expenses for the truck?

a. form 4562 only.
b. schedule c, schedule e, and form 4562.
c. schedule c and form 4562.
d. schedule e and form 4562.

Answer 1

the correct answer is B. Schedule C, Schedule E, and Form 4562.

Step-by-step explanation:

Jamal should report expenses for his Dodge Ram truck used in his landscaping business and for travels to his rental property on different forms depending on the type of expense and its related activity. Since he uses actual expenses rather than the standard mileage rate, he needs to allocate the expenses accordingly between business and personal use.

For the expenses associated with the landscaping business, these would be reported on Schedule C (Form 1040), Profit or Loss from Business. This includes costs directly related to the business use of the truck, such as gas, repairs, insurance, and depreciation.

Depreciation expenses for the truck are reported on Form 4562, Depreciation and Amortization. Jamal needs to fill out this form to calculate and report the depreciation, and then carry the information over to Schedule C.

Lastly, the costs associated with travel to the rental property, since it is an income-generating activity separate from his business, would be reported on Schedule E (Form 1040), Supplemental Income and Loss. However, it's important that Jamal apportions the expenses appropriately based on the usage for each activity.