You must declare over 50% business use and you must deduct actual costs of maintaining a vehicle that was used for business purposes. Actual costs includes vehicle depreciation over five years. See this TurboTax Help.
To access vehicle expenses against self-employment income, follow these steps.
- Down the left side of the screen, click 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.
- Click on Edit next to the business activity.
- At the screen Here’s your xxx info, click Edit to the right of the expense Vehicle.
Follow the screens that ask for vehicle information.
At the screen How much do you want to deduct for the business use of this vehicle? you will be given the option of Section 179 Deduction if you tax return qualifies for the deduction.
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