) How do I enter vehicle depreciation for a self employed business expense?

[IreneS · Accepted solution]

UPDATED FOR TAX YEAR 2019

For vehicles used in your business you can either take mileage or actual expenses.

• If you choose to take mileage, depreciation is taken into consideration in the mileage rate.
• If you choose to take actual expenses, TurboTax will automatically calculate the deduction and include it with the other vehicle expenses.  To find the depreciation amount, just subtract the expenses you entered from the total expense displayed.

As you go through the interview, TurboTax will first calculate the standard mileage deduction and then ask if you would like to see if actual expenses would give a higher deduction.  You will have the opportunity to enter the expenses (gas, tires, etc.) and TurboTax will add these along with the depreciation and give you a comparison. 

To enter information on your business vehicle, please follow these steps:

1. Click on Income and Expenses and then click the Start/Revisit box in the Self-Employment section.
2. On the Your 20XX self-employed work summary screen, click on Edit next to your business.  
3. If you've already started to enter information on your vehicles, in the EXPENSES section click on Edit next to Vehicle.  
4. If you haven't started, on the Here's your [business] info screen, click on the box Add expenses for this work.  
5. On the next screen click the radio button next to Vehicle and click Continue at the bottom of the screen.
6. Continue through the interview, entering the requested information.
7. After entering information on your vehicle, you will be taken to the Vehicle Summary screen, where you will be able to add another vehicle. 

[Edited | 4/15/2020 | 1:59pm PDT]