Allocation of business vehicle purchase
I purchased a vehicle for my business use only.
SELLING PRICE 48,210.00 IS THE FOLLOWING THE PROPER WAY TO ALLOCATE FOR AN S CORP.
DOC FEES 172.15 DB ASSET ACCOUNT VEHICLES 51,525.00
TAXABLE TOTAL 48,382.15 CR LIABILITY ACCT LOAN 39,567.48
SALES TAX 2,860.33 CR ASSET CASH ACCOUNT 15,000.00
STATE LIC./TITLE 10.00 DB EXPENSE ACCT PROP TAX/LIC 2,870.33
EXTENDED WARRANTY 3,315.00 DB EXPENSE ACCT BANK CHG. 172.15
TOTAL PRICE 54,567.48
DOWN PAYMENT 15,000.00
FINANCED AMT. 39,567.48
Based on the info you have provided, it seems that you are debiting and crediting the correct accounts. However, I would recommend that you have an accountant or CPA confirm this with the actual documentation of the purchase. In addition, you may be eligible to deduct a portion if not the entire cost of the vehicle on your taxes by taking the Section 179 deduction. You can learn more about how this deduction works in our Section 179 deduction guide here: https://fitsmallbusiness.com/section-179-deduction/
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