I own a business and bought a new mid size SUV for $62000 in 2023 that I use 80% for business. Can I depreciate the car on my 2023 taxes?

[Vanessa A]

Yes.  As you walk through the business income and expense section, you will be able to enter your vehicle expenses.  TurboTax will take you through the steps and ask you if you want to use the standard mileage deduction or actual expense.  In the actual expense method, you will be given the chance to decide how you want to depreciate your SUV.  You will need to work through prorating the SUV as you can only deduct the parts that are related to business.  You cannot deduct any part that is only related to personal use. 

Deducting Auto Expenses

[AmeliesUncle]

Just to caution you about a couple of things:

1) If you use Actual Expenses (including depreciation), you can never use the Standard Mileage Rate for that vehicle.

2) If your business percentage drops to 50% or less in future years, there may be "recapture" of the depreciation that you took in 2023.