I am self-employed. In November, I took a former personal car and gave it to a new kind of car rental company. The deal is they rent out your car and I get paid a share of the proceeds. They have control of the car the whole time, I don't use it personally anymore. The car's fair market value the day I put in service to the business was $12,500.
The question is how to handle this on my Schedule C. My thinking was to claim actual expenses and depreciation. For one thing, I am not tracking miles or buying gas, so the standard mileage deduction seems incorrect. For another, I read that I should be able to write off the whole vehicle cost using bonus depreciation. The car is more of a business asset than a personal car sometimes used on the job.
TurboTax is walking me through the vehicle use for business questions and they aren't making sense for my situation. They want me to enter mileage (which I don't have) and even when I force it to use actual expenses, it's not offering the bonus depreciation that I expected.
Any advice? Thank you!
