Vehicle depreciation only applies when you are using actual expenses. Actual expenses include fuel, maintenance, repairs, tires, insurance, registration fees, licenses, or lease payments. You can only claim a portion of the expenses that are business-related.
To enter your vehicle expense in TurboTax, go to your Schedule C, and navigate to the Business Expenses. You will need to enter the vehicle in the Assets/Depreciation or you can enter it in the vehicle mileage section and here you would need to select actual expenses. You will need to enter the cost, the date you started using the vehicle for business, your mileage.
As you enter the information in TurboTax the program will help you decide which method is more advantageous for you. See the following TurboTax help articles for more information:
