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tamarrafw
New Member

If I used my vehicle for two difference self-employed businesses then should I divide the vehicle expenses in half for business deductible

 
1 Reply
HelenaC
New Member

If I used my vehicle for two difference self-employed businesses then should I divide the vehicle expenses in half for business deductible

Yes, you should divide the vehicle expenses in half if you use your vehicle 50/50 for each business. You can also use any other appropriate percentage rate.

You can only deduct mileage if you keep a written log of your miles otherwise you can't deduct mileage. Per IRS, you have to have adequate evidence. See https://www.irs.gov/publications/p463/ch05.html .

The IRS considers adequate evidence as a log of  "who, what, when, and where" which may include the following:

  • The cost of the car and any improvements,
  • The date you started using it for business,
  • The mileage for each business use,
  • The total miles for the year.
  • Date of the expense.
  • Your business destination.
  • Business purpose for the expense. 

  

If you are self-employed (Schedule C), enter/edit your vehicle's mileage:

  • Log on to TurboTax and click on the orange button, Take me to my return.
  • Type vehicle expenses, self-employed business in the search/find box and click search.
  • Click on Jump to vehicle expenses, self-employed business.
  • Edit your business.
  • At the 'Your xxxx Business' screen, scroll down to Business Expenses.
  • Click start/update next to Business Vehicle Expense.
  • Continue with the onscreen interview until you get to the 'How Do You Want to Enter Your Mileage for your vehicle'.  See the screenshot below.


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