Deductions & credits

Please review this IRS link for further details. If you claim actual expenses, the program will ask you about the purchase of the car and determine the depreciation expense for this year. Keep in mind though, if you choose to claim actual expenses this year, you will need to claim it in subsequent years. However if you used mileage in your first year in your business, you do have the option to use actual expenses in your second year of business. This is mentioned in the following IRS link. it states, " To use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses. For a car you lease, you must use the standard mileage rate method for the entire lease period (including renewals) if you choose the standard mileage rate."

If you in your first year of business, you can choose to let Turbo Tax recommend the best option for you. You will enter mileage and actual expense information and Turbo Tax will make the determination on which option is best for you. 

[Edited 01-24-2021 02:08PST]