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Get your taxes done using TurboTax
There is not a general "best answer" to this question.
There are several factors to consider with this.
1) Was this your first year doing Turo?
2) How old is the car and how much did you pay for it? If it is a new car and you want to deduct the full amount this year, you could lower your profit and offset other income, but would it be better to lower your profit in future years instead?
3) How many years do you plan to do Turo?
Basically, the things to consider are
- If you use the actual expenses and depreciation in the first year, you cannot switch back and forth. You will not be able to claim the standard mileage deduction in any future years.
- If you use the standard mileage in the first year, you can switch back and forth, but you cannot claim any special depreciation or bonus depreciation in future years.
- If you do not use this vehicle exclusively for Turo, then you would need to prorate depreciation and actual expenses. Where as if you use the standard mileage, you would only need to enter the miles you used it for business (well the customers used it for business)
You can check both ways in TurboTax to see which one you make out with best this year. You will want to consider what your future situation will look like as well when determining which one to do this year.
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‎April 1, 2025
9:23 AM