I purchased a new vehicle for business in the middle of the year, how do I add the car and its expenses?

 
Coleen3
Intuit Alumni

Deductions & credits

You will need to upgrade to enter any business expenses.

If you are deducting expenses for the business use of your vehicle, you enter it under the expense portion of business income. Since this the first year your car is in service, you have the choice of standard miles or actual expenses. 

You can deduct 54.5 cents per mile or actual vehicle expenses (ie. gasoline. oil, tires, maintenance) prorated for business miles.

If you claim the standard mileage rate in year one for this vehicle, you will have the option of deducting the standard rate or actual expenses in subsequent years. If you claim actual vehicle expenses in year one, you must choose actual expenses in every subsequent year for that auto.

To enter vehicle expenses in TurboTax Self Employed:

Type in Schedule C in the search box, top right of your screen

Click on the first category Jump to schedule c link

Follow the prompts and online instructions

  • Arrive at the Your Business page
  • Scroll down to the Business Expense category
  • First category is Business Vehicle Expense
  • Click Start or Update to make your entries