Deductions & credits

Ok, watch very carefully. 1st things 1st

Under business expenses/ Cars, truck and other vehicle expenses. Next screen Vehicle summary. see here

In the 1st vehicle which was your 1st leased vehicle, you'll go through the input and enter all your vehicle expenses for the lease. As you go through the input, you'll want to indicate that it's a leased vehicle like this

On the second line, you'll input all the vehicle expense information as if this was a new vehicle because you bought this  leased vehicle.

On the 3rd line, you'll record the purchase of the new vehicle which trade in your old vehicle for. It is in this screenin which you'll record the amount you paid for it as well as the Section 179 depreciation as follows:

Here you'll say I own the vehicle

 

 

Hit continue, continue etc. till you get to this screen and select yes, I'd like to see if my actual expenses give me a bigger deduction

 

Hit continue, continue etc. till you get to this screen, I purchased this vehicle new

Keep going till this screen where you'll indicate that the vehicle was part of a trade in

Hit enter, enter till you get to this screen

Capture.PNG

And then the next screenCapture.PNG

On this screen, you would only put in 70% of the total purchase price and then

 

 

 

 

 

 

Do you want to take the Special Depreciation Allowance

Finally, because you put the new vehicle in service only in October of 2022, your Section 179 depreciation is only taking 25% of that 70%. And "NOT" the whole 70%.

 

Good Luck!

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