Question

How do I enter business only vehicle my business purchased in october 2017 after lease that began in december 2013.

Forum|Forum|5 years ago
August 29, 2020
1 reply
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I leased the vehicle in december 2013 for my business and claimed it using actual expenses. the lease ended in October 2018 and I converted the lease to a financed purchase. How do I show this on my taxes?

TurboTax Home & Biz Windows

A

AmeliesUncle

You treat it as two separate vehicles.

Enter or edit the leased vehicle in the program. Enter all of the information and indicate it was disposed of.

Then enter a second vehicle in the program, using the purchase price of the vehicle.

However, it looks like you are doing your 2017 or 2018 tax returns now in 2020. Because it is late, you can NOT choose to use the Standard Mileage Rate. You MUST use the Actual Expenses (and continue to use it for as long as you own the vehicle).