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

Jamal should report his truck expenses on Schedule C for his landscaping business, Schedule E for his rental property activities, and Form 4562 for depreciation. Hence, the correct answer is b. Schedule C, Schedule E, and Form 4562.

Step-by-step explanation:

Jamal uses his 2019 Dodge Ram truck for his landscaping business and for traveling to his rental property 100 miles away. Since he uses actual expenses for the truck's usage, he will need to report these expenses on his tax forms. For the business use of his truck related to the landscaping business, he will report expenses on Schedule C, Profit or Loss from Business, and for the truck's depreciation, he'll use Form 4562, Depreciation and Amortization. As for the trips to the rental property, these expenses should be reported on Schedule E, Supplemental Income and Loss, because they are related to rental property activity.

Therefore, the correct answer to Jamal's question is b. Schedule C, Schedule E, and Form 4562. These forms are used to report income and expenses related to a business and rental activities, respectively, including the specific expenses for vehicles used for these purposes.