Where do I enter a vehicle purchased for business?

[p1234]

I'm using Home & Business edition. I only have the oppurtunity to enter in expenses associated with it, but not the purchase of it. Under depreciable assets, turbotax says not to enter vehicles.

[RichardG]

Your entering the vehicle in the right place.  With the standard mileage deduction, the cost of the vehicle isn't relevant. 

Unless you elect to use actual expenses for the vehicle, you don't enter the cost of the vehicle.  If you answer yes to the question "Do you want to see if your actual business expenses give you a bigger deduction?" you'll enter the purchase price in that interview.

[franzwa]

I don't see the question "Do you want to see if your actual business expenses give you a bigger deduction'? Where is that question?

[ebeard5]

I was looking for the same thing.  If you purchase a work truck you can use the purchase of the truck and have as an asset using the Section 179 to write it off one time.  In TurboTax on the assets it says don't put vehicles there.  So where do you put it?

[Critter]

Start the vehicle expenses section again ( you may choose to delete the vehicle and start again) to get to the actual expenses option : 

[ebeard5]

Thanks that is what I did and there is not place for purchase of it that I can find.

But if you put actual expenses and not miles you can put it there.  But it will not let

you take miles and the cost.  Which is weird.

Appreciate the help.

[Critter]

It is the way the IRS rules are ... you can ONLY take the standard mileage rate OR the prorated actual expenses option but NOT BOTH.

[fixitdaily]

you can enter there but ultimately to get tax deductions you'll have to enter it in Assets. You'll have to go deep and claim straight line depreciation then you will be given a choice to take the full amount for the tax year or depreciate over time

[gs28]

IF YOU PURCHASE A WORK TRUCK NEW OR USE YOU CAN USE THE PURCHASE OF THE TRUCK AND HAVE AS AN ASSET USING THE SECTION 179 TO WRITE IT OFF ONE TIME OR WHERE DO YOU PUT AT AS EXPENSE :$50,000 TOTAL PRICE.

[JamesG1]

In TurboTax Online Self-employed, follow these directions:

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Income & expenses.
• Under Your income and expenses, scroll down to Self-employment income and expenses.
• Click on Edit/Add to the right of Self-employment income and expenses.
• Click Edit to the right of the self-employment activity.
• Scroll down to Vehicle click Edit to the right.
• Create the asset.
• At the screen Based on the miles you drove...., scroll down to the options below.
• Click on I'll enter my actual expenses.  Click Continue.
• Continue through several screens.
• At the screen How much do you want to deduct, Section 179 deduction is listed in the middle of the screen if you qualify for the deduction.

See also this TurboTax Help.

[ajeeves]

Ok but why does it say depreciation is to high

[BrittanyS]

This means you have the depreciation value set too high compared to the vehicle's worth. You can fix this by following these steps:

1. Delete the vehicle
2. Add the Vehicle back in with its original service date
3. Calculate your estimated depreciation per year based on miles used for the business

Depreciation is allowed because it is reasonable to expect the asset to wear out and the value to lower as the asset is used.  Depreciation enables business owners to write off the wear on an asset as it is used, sold, or disposed of.  

For more information, see the link below:

Depreciation of Business Assets