Question

My business owns a box truck and makes payments on it. Can I deduct the bank payments?

Forum|Forum|5 years ago
May 13, 2021
1 reply
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The truck has been built out as a mobile fashion boutique and there is no personal use. Its our store. Can I deduct the cost of owning the store?

J

Joroman2k1Author

Also Turbo Tax does not seem to allow me any deduction. It says I used the truck 0% in 2020, however our store was shut down by the government. It remained parked all of 2020 with no miles or anything. Its just a big expensive rock sitting in our driveway. But still I make the payments and the rather crazy expensive vehicle insurance. Any ideas?

B

BillM223

No, you don't deduct the payments (which consist of principal and interest); instead, you depreciate the vehicle (unless it is eligible for some sort of bonus depreciation), and only the interest from the payments.

Did you buy the truck in 2020? Then you should have tried to enter it as a new asset and let TurboTax guide you on how it is to be handled.

In any case, enter the interest paid in 2020 as interest into the Schedule C interview.

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