Confusing 1099

Okay... so I use my Subaru for work the last 3-4 months as a home health therapist. The question is...
I still make payments on that car.. but there’s a stupid unclear question asking me:

“What did you pay for the Subaru Impreza STI?”

And

“What was the value of your vehicle (market value or blue book value) on the date you started using it for business?”

How am I suppose to answer the 2nd question if I’m still making payments on the car? I can put that the car is 27000 and that KBB depreciation is 23000 because I didn’t pay the full 27000.

What am I suppose to put? I made a 3000 down payment and made 3 payments on the car so far. I can’t put 3000+3months of payment for the first question because the car depreciation is 23000.

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Sorry typo. “I CAN’T put 27000...”
IsabellaG
Employee Tax Expert

Get your taxes done using TurboTax

The amount you paid for your Subaru includes the amount you borrowed to buy it. So if the sales price was $27000, that's what you paid for it. You paid for it partly with cash and partly with a loan. But you paid $27,000 no matter how much you borrowed.

 

The value of the car on the day you started using it is the market or Blue Book value on that date. Again, it doesn't matter how much you borrowed. Your cost for the car is Cash + Loan, and the amount is on the Sales Contract.

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Thank you so much Isabella!
IsabellaG
Employee Tax Expert

Get your taxes done using TurboTax

So glad I could help!

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