Knowledge Base

11459: 1065 - Mileage and Automobile/Truck Expenses

1065 Partnership

Where do I enter automobile and truck expenses (including mileage) in a partnership return?


Mileage and vehicle expenses are reported differently depending on whether the partnership or partner owns the vehicle that is used for partnership business.

Partnership Owns Vehicle

If the partnership owns the vehicle then the vehicle must be depreciated and actual expenses would be reported on Form 1065. In a 1065 return, the total can be entered as Automobile and truck expense on the DED screen (on the General tab).

Expenses based on the standard mileage rate and business miles are not calculated by Drake Tax in the 1065 package. You must calculate and enter the total car and truck expenses on the DED screen directly.

If you complete Form 4562 outside of Drake and want to enter the information directly on the form for record keeping purposes, actual mileage can be entered on override screen 9 4562 Parts 5b and 5c (on the Assets-Sales-Recapture tab under the Depreciable Assets section). See "4562 Screen and Screens 6-9" in Related Links below. 

Partner Owns Vehicle

If the partner owns the vehicle, and is being reimbursed for mileage use, then the partnership would report the reimbursed expenses on Schedule K-1, line 20 and the partner would report the deduction on their Schedule E, Form 1040 using Unreimbursed Partnership Expense (UPE). See the Schedule E Instructions and Related Links below for details. 

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