Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Oct 29, 2019 7:18:06 PM

For sole proprierter, im adding car allowance. what does "personal" mean in the section that reads "if you purchased equipment duringthe year, enter the details here

0 1 449
1 Best answer
New Member
Oct 29, 2019 7:18:06 PM

It means that you are adding some item of equipment, the cost $500 and above, as a business asset.  This means that you cannot claim the entire amount as an expense, but only a portion of it based on the asset class.  The "personal" space is for the portion of time that is is not used for business.  A car might be added as an asset, but is used for business and personal.  You cannot deduct your personal use, so the personal portion is subtracted and capital cost allowance calculated on the remainder.

1 Replies
New Member
Oct 29, 2019 7:18:06 PM

It means that you are adding some item of equipment, the cost $500 and above, as a business asset.  This means that you cannot claim the entire amount as an expense, but only a portion of it based on the asset class.  The "personal" space is for the portion of time that is is not used for business.  A car might be added as an asset, but is used for business and personal.  You cannot deduct your personal use, so the personal portion is subtracted and capital cost allowance calculated on the remainder.