You have two parts to fill out. Before you enter the vehicle, math needs to be done. You need to know the business use percentage of everything car related. Even though the mileage is not deductible ...
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You have two parts to fill out. Before you enter the vehicle, math needs to be done. You need to know the business use percentage of everything car related. Even though the mileage is not deductible on a rental, a good mileage log will help when the IRS asks questions. For example: If your gas receipts for the year are $3,000 and your mileage log shows 80% of your miles were for business, then $3,000 x 80% = $2400 gas deduction. Use the same principle for the business lease portion. Follow these steps: A rental car is entered on line 20, Look under other expenses for rented or leased a vehicle, machinery, or equipment. Enter the business portion of the rent. Since it is a rental car, you will not claim mileage but you can claim the actual cost of gas/ parking fees / tolls / insurance while in business use. There are two ways to claim these expenses. Method One -enter under Other expenses -Part V - list each expense and the dollar amount for business use - calculated from above. Method Two - use the vehicle section carefully. When it asks about the vehicle, make the car type - leased. you must choose actual expenses. Enter the business mileage log information, fill in the answers to actual expenses using the full amount as the program will do the math for you. If you have a leased car, the answer is different.