Yes, you can.
You can deduct 54 cents per mile (which includes depreciation) or actual vehicle expenses (ie. gasoline. oil, tires, maintenance, depreciation) prorated for business miles.
If you claim the standard mileage rate in year one for this vehicle, you will have the option of deducting the standard rate or actual expenses in subsequent years. If you claim actual vehicle expenses in year one, you must choose actual expenses in every subsequent year for that auto.
To report your vehicle expenses in TurboTax Self Employed:
Type in schedule c in the search box, top right of your screen
Click on the first category Jump to schedule c link
Follow the prompts and online instructions
Arrive at the Your Business page
Scroll down to the Business Expenses category in which you will see in the first category,
Business Vehicle Expense (where you will enter your vehicle/mileage deductions)
Sorry, perhaps my question was unclear. I'm planning on utilizing the standard mileage deduction this year. My question is regarding the purchase price of the car. Can I only claim my down payment and loan payments this year for expenses, or is there a way to spread the deduction for the purchase over the next few years or the life of the investment?
No, you cannot deduct the down payment and loan payments. You can recover the cost of the vehicle in one of two ways. As mentioned above, the standard mileage deduction is meant to cover all vehicle expenses including depreciation, or you could choose the actual expenses where a specific depreciation expenses is calculated. Either way, the cost of your vehicle is covered as long as you use it for business purposes.
So even though this vehicle was purchased for the express purpose of my business I cannot deduct the purchase cost?
Why does the purchase of a vehicle for use as a taxi not qualify as a startup expense?
Even if it were a start up expense, the best you could do would be to deduct $5,000 in year one, and amortize the balance over 15 years.