Where do I enter auto lease payments, gas, etc. I'm listing individual expenses for my business auto?

[zack19--]

WHERE DO I LIST AUTO LEASE EXPENSES

[RayW7]

To enter your vehicle lease expenses, please follow the instructions below:

Go To:

1. Business

2. Business and Income

3. Business Income and Expense

4: Business Vehicle Expense

From there add your vehicle and follow the prompts.  When asked answer I lease this vehicle

You can use the either the standard mileage or actual expenses method for a leased vehicle. However, if you use the standard mileage rate, you cannot switch to the actual expense method in a later year.

• • If you use the standard mileage rate for a leased vehicle, the lease payment amount is not deductible.
  • If you use the actual expenses method, leased vehicles are not depreciated. Instead, the business portion of the lease payment is deducted.

[Anonymous]

What if the lease is in your parent's name, but they got the car for you and you make the lease payments?  Can you answer "Yes" to  "I lease the vehicle" so that you can write off the mileage or the lease payments?  After all, you are making the payments.

[Carl]

If you or your business are legally obligated to pay the vehicle lease, then no problem.

[nw9393]

I am having a problem with switching methods with a new business vehicle.  I used the standard mileage rate with the old vehicle, which was disposed of during the year.  I am now leasing a new vehicle and want to use the actual expenses for this vehicle and the software is not letting me use the actual expense method.  Please help!

[Critter-3]

Did you retire the old car in the program and  make a new entry for the new car ?   Once you do the option to use the actual expenses will be allowed. 

[nw9393]

It shows that the old car was sold/disposed during 2021 and then the new vehicle was added to the business, but the new vehicle automatically comes up with the standard mileage option and not the actual expenses options.  I don't see a retire the vehicle option for the old, but it does show sold/disposed, which is why I am so confused.

Thanks.

[Critter-3]

I suggest you delete the new vehicle,  close the program, clear your cookies and/or switch browsers and try entering the new vehicle again.  

[Slo4ndmt4x]

There doesn't seem to be a line for lease payments under actual expenses. Do I add it to other expenses?

[BrittanyS]

Here are the steps for entering your vehicle lease expense:

1. Click the Federal Taxes tab
2. Click Wages and Income
3. Click Edit next to Self-employment income
4. Click Edit next to your company name
5. Scroll down to the Expenses section and click Add Expenses for this work
6. Select Vehicle and then Continue.
7. Answer Yes: Did you use a car or truck for your business?
8. Proceed through the interview
9. Once you get to the "You've got a standard mileage deduction…" screen, click Yes to enter your actual expenses.
10. Continue through the interview until you get to the "Enter the lease expenses" page and enter your vehicle lease expenses.
11. Proceed through the rest of the interview to complete your vehicle expenses.

There are two methods to claim vehicle expenses.  TurboTax gives you the option to enter either method.  Listed below is the explanation of each method:

• Actual Expenses - Expenses related to owning and operating your vehicle as a business owner, such as depreciation, lease payments, gas and oil, tires, repairs, insurance, registration fees, parking fees and tolls, and garage rent.
• Standard Mileage Rate - The IRS had two rates for 2022.  For the first half of 2022 (January - June), the rate was 58.5 cents.  For the second half of 2022 (July - December), the rate was 62.5 cents.

For more information on Vehicle Expenses, see the link below:

Standard Mileage vs. Actual Expenses

@Slo4ndmt4x