Car for W2 job and Car for Rental Property (Passive Income)
Hello, Dear Community - I hope you are doing well.
I use a car a lot for work and to rent out the property (which is in another city, and I have to drive there to check on it occasionally).
Questions:
1) I learned that $ car use is deducted when used for business. Can it be deducted for use for my W2 job? If this is not allowed - in what instances can I deduct car business use and can I deduct both annual car expenses and depreciation of the car and how?
2) Schedule E (rental property) has a line item for car use. Understood, I can deduct car expenses to run investment property (passive activity) for a particular year. Also, the car can be depreciated (as understood), and what do I need to do if I had not started depreciating it years ago when I first acquired and rented out the property? Is there anything else I might be missing here?
I am trying to understand how I can deduct the business use of my car if it is used for work and investment property (passive income). I think in TurboTax - I see two places where I can put my car expenses - one in the "Rental Property" section (Schedule E) and one in the "Car Deductions" section for Schedule C. A bit confused.
