Question

Where do I deduct car purchase for business?

Forum|Forum|2 years ago
April 12, 2024
2 replies
0 views

I bought a car I exclusively use for business in 2023. Transportation is necessary for my business operation. I know where to deduct miles driven for business and related car expenses. Where specifically do I deduct the cost of the car?

TurboTax Home & Biz Windows

KrisD15

Setup the business profile first if 2023 was the business's first year.

Select EDIT for that business

Scroll down to "Business Expenses"

Scroll down under that to "Business Vehicle Expenses" START or UPDATE

Select "Add a Vehicle"

Continue through the interview to add the vehicle, costs, and take a different depreciation (such as Bonus Depreciation) if eligible.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

T

thewarningAuthor

I previously chose standard mileage deduction under "vehicle summary." If I go back and choose actual expenses it allows me to add the value of the car for that deduction. My question now is can I stick with standard mileage deduction and add the cost of the vehicle in another location such as "Other Common Business Expenses"?

T

ThomasM125

No, you can only use the mileage allowance or the actual cost of the vehicle and it's operation, you can't do both.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

M

Mike9241

When you first use a car for business purposes, you must choose either the standard mileage rate or the actual expense method.
If you choose the standard mileage rate in the first year the car is available for business use, you can switch between methods in later years.
However, if you use actual expenses for the vehicle (even in the first year), you cannot switch to the standard mileage rate. You must continue using actual expenses as long as you use that car for business.