No, but you can take a deduction for the business use and/or business mileage for business use on this vehicle.
You can use the standard mileage rate or the actual expenses. The cost of the vehicle will include the cost of the sales tax paid at purchase as well as the down payment.
You cannot deduct the monthly payments or the down payment on the car. However you can deduct the business percentage of the interest paid in addition to the standard mileage rate because you are self employed.
- Click here for information on the standard mileage rate or actual expense method. The standard mileage rate is the easiest method and for 2016 the rate was $.54 per mile.
- Click here for TurboTax blog on Business Use of Vehicle.
Standard mileage rate must be used the first year a car is placed in service for business or only actual expenses can be used in the future on the same vehicle. Then, in later years, you can choose to use either the standard mileage or actual cost method.
You can enter this information under the Business tab.
- Update, then Business Expenses > Business Vehicle Expense
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