@Jessicaguo wrote:
For example, I use 200 miles for business, and 300 miles for rental, and 500 miles for personal purposes. It seems that if I put vehicle expenses on both places - (20% usage for business and 30% on rental keep all other costs such as registration, car repair, etc the same), Turbotax treated my car as two separate cars... The depreciation seems not correct in this case (I prefer using actual expense since this will give me a bigger return).
Yes, the program would be treated as two separate vehicles.
The depreciation should be perfectly fine. Sort of/maybe. If the total business/rental usage is over 50%, you have the option to use "accelerated" depreciation, but having it split won't allow you to do that. Was the vehicle used before 2024, and if so, was it using "accelerated" depreciation (Bonus depreciation, 200%DB, or Section 179)? If the total business/rental percentage was 50% or less (including in prior years), that doesn't apply and splitting it is fine.
