You need to enter your vehicle in the Vehicle Expenses section of your self-employment income. In order to take the Section 179 Deduction, you will need to report actual expenses instead of taking the standard mileage deduction.
To do this in TurboTax Online you can follow these steps:
- Within your tax return use the magnifying glass icon to search for Schedule C
- Click the Jump to link
- Click Edit for the line of work
- Scroll down to Expenses and click Start or Edit if the category you want is shown
- If you don't see the category you want listed click Add expenses for this work
- Scroll to and mark the box for the category of expense you want to add - if you don't see it on the list, scroll down to the Less Common section and click the down arrow and show more until you do
- Click Continue
- Enter the details about your car until you get to the Based on the miles you drove...screen and select I'll enter my actual expenses...
- Follow the prompts to enter actual expenses and the cost of the vehicle
- Enter the amount of Section 179 expense you want to take on the How much do you want to deduct... screen (be aware that your Section 179 deduction is only allowable up to your net income for the year, so if you have a lower income amount your deduction may be limited and create a Section 179 carryover)
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