How to add auto loan and depreciation

Thuc

Hello to everyone!

I am new to the community and business/bookkeeping.

I have a car that was purchased primarily for car sharing/car rental. When it is not being rented out, I use it personally. My question is how do I add the car as an asset and the loan into my wave account? Below is the info of the loan:

Vehicle selling price: $14,600
TAVT/Sales Tax: $1,387.41
License and Title Fee: $438
Transit Charge: $399
Gap Coverage: $695
Subtotal: $17,519.41
Finance Charge: $2,557.26
Down payment: $0
Total Sale Price: $20,076.67

Monthly loan payment deducted from my checking account:
68 payments of $292
1 payment of $220.67

It doesn't say on the statement how much the finance interests is on each payment installment. So can I just divide the total finance charge amount by the total number of payments? Each payment installment is deducted from my checking account monthly.

As for adding the car as an asset, how can I do this? When adding the vehicle, do I enter the vehicle selling price of $14,600 or a total sale price of $20,076.67?

From my understanding, I cannot use the standard mileage deduction of $0.58/mi since I am using it for car-sharing and not rideshare. However, I can deduct the business use portion of the vehicle and multiply that percentage by the deductible business expense to arrive at the actual expense depreciation amount.

If my actual expense depreciation for the car is $1000 at the end of the year, do I deduct this amount from the beginning asset value if $14,600?

If the car is in service for 6 years and each year the actual depreciation expense is $1000 totaling $6,000, do I deduct this amount from the beginning asset value of $14,600 to come up with the value of the asset at that time?

When I sell the car at the end of the 6th year and it sells for S7,000, do I deduct the total actual expense depreciation amount of $6,000 from it to arrive at the capital gain from the sale of the vehicle?

If the actual expense depreciation is $15,000 at the end of the 6th year, do I deduct it from the beginning asset value of $14,600 arrive at a net loss of $400 on the sale of the vehicle?

Thank you for everyone's help in advance!

Regards,
Thuc

Barsin

Hey there @Thuc

First off welcome to Wave and to our community! We appreciate you reaching out here

This sounds like a real complex accounting question which I would hate to give you erroneous advice on, so I will wait for an accountant to chime in. However I can link you some helpful articles which might be able to answer your questions!

Take care and have a wonderful day.

Recording Mileage

Accounting for a loan

Depreciation in Wave

Thuc

Hi Barsin,

Thanks for your response and help! I will take a look at the info in the links you provided. I understand that my accounting questions are fairly complex. As such, I appreciate everyone's help in advance!

Thanks again,
Thuc