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Deductions & credits
Understand that the cost of the vehicle is never a "permanent" write-off. You report/claim the vehicle in the Business Vehicle Expenses section. You may or may not qualify for the SEC 179 and/or Special Depreciation allowance, which allows you to depreciate up to 100% of the cost in that first year. Just work it through, and based on your input the program will "know" what you qualify for and present you those options to either take or decline as you choose.
My recommendation is that if your business does "NOT" have the taxable business income from which you take the SEC179 or SDA, then don't take that option (at least not 100% of it) if it won't benefit you tax-wise on your 2020 tax return.
‎February 11, 2021
1:29 PM
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