My vehicle was new when I leased it in 2016, and I started using it for business that December, then bought out the vehicle in 2019. My research from other answers to questions shows a couple of things (please correct if either is wrong):
1. It would be considered purchased used.
2. I would have to mark that I stopped using this vehicle for business in 2019, and add another separate instance of the vehicle that starts from date of purchase. To complicate the situation, I purchased it in the middle of the year, so the expenses are split between the leased time and the owned time.
Also, if I do need to add it as a new separate instance of the vehicle, can I take the standard deduction despite having taken the actual expense for the first year it was leased?
1. It would be considered purchased used. yes ... it is used
2. I would have to mark that I stopped using this vehicle for business in 2019, and add another separate instance of the vehicle that starts from date of purchase. To complicate the situation, I purchased it in the middle of the year, so the expenses are split between the leased time and the owned time. yes ... you have 2 cars to report ... one was leased and one you bought even though it was the same car
1. It would be considered purchased used. yes ... it is used
2. I would have to mark that I stopped using this vehicle for business in 2019, and add another separate instance of the vehicle that starts from date of purchase. To complicate the situation, I purchased it in the middle of the year, so the expenses are split between the leased time and the owned time. yes ... you have 2 cars to report ... one was leased and one you bought even though it was the same car
So in Turbo Tax, when I edit information for the "old" (leased) vehicle, should I check, "I stopped using this vehicle in 2019."? And when it asks on the next screen whether I own, lease, or it isn't mine, would I select lease for this one, and own for the other instance of the vehicle? Or would I selected own for both instances? I am pretty sure that selecting lease for the first instance and own for the 2nd is the correct course to take, but I'd like to be certain.