Deductions & credits

Section 179 is a depreciation option you can take when you first place an asset in service.   To enter your business vehicle, and calculate the 179 deduction, please follow these steps:

TurboTax CD/Download

1. Click on the Business tab > Continue > I'll choose what to work on
2. In the Business Expenses section, click the Start/Update button. 
3. If you have already started adding information about your business, you will see the screen Here’s the business info we have so far.  Click on the Edit box next to the business. 
4. If you haven't already started adding business information, continue through the screens to enter the needed information.
5. You will now be on the Your [XX] Business screen. 
6. In the Business Expenses section, click the Start box next to Business Vehicle Expense.
7. Continue through the screens.  TurboTax will first calculate the standard mileage deduction and then ask you if you want to calculate actual expenses.  [TT Online: Mark the Yes radio button and click Continue.  
8. On the screen, How much do you want  to deduct for the business use of this vehicle, TurboTax will indicate the max amount of 179 and special depreciation allowance.  Enter the amount you wish to take.  [See Screenshot below.]
9. On the next screen, indicate whether you want to take standard mileage or actual expenses (including 179)

TurboTax Online

1. Click Wages & Income
2. Under the Self-Employment section, click the Start/Revisit box next to Self-employment income and expenses.
3. On the Your 2020 self-employed work summary screen, click on Edit next to your business. 
4. In the Expenses section, click Edit next to Vehicle.  If you don’t already have Vehicle listed on this page, click the Add expenses for this work box
5. On the Here's your [business] info screen, click on the box Add expenses for this work. 
6. On the next screen, click the radio button next to Vehicle and click Continue.
7. Continue through the interview, entering the requested information.
8. On the screen, Now let's select your vehicle deduction, mark the button Help me estimate my actual expenses and click Continue.
9. On the screen, How much do you want to deduct for the business use of this vehicle? TurboTax has calculated the allowable 179 deduction and you will be able to indicate the amount you wish to take. 

@Galateanu