Rental car expense for business

[stephen6]

My job requires me to drive to see my customers.  My car required some extensive repairs this year.  While in the shop, I rented a vehicle to continue doing business.  Are the repairs and/or rental expenses tax deductible expense items?  If so, how and where to I enter those expenses?

[stephen6]

I'm not finding Other Vehicle Expenses page or the Business Local Transportation line item.  I'm using Home & Business version.

[Belling · Accepted solution]

Yes. The repairs and the rental car expenses are deductible business vehicle use expenses.

Here is how you will enter these Business vehicle expenses into TurboTax Home & Business:

•  Business< Business Income & Expenses< "Jump to a Full List" < Business Income & Expenses. Click on Update or Start across from Business Income & Expenses, as pictured in the first screenshot I have attached. 

•  You will be brought to your Business' Income & Expenses summary page, as shown in the second screenshot I have attached. Scroll down to Business Expenses, and click on Update across from Business Vehicle Expense.

• You will be able to click on Edit across from the vehicle in question, and proceed through all the questions again. You will be able to change any answer you wish, including the choice of standard or actual expense mileage deduction. 

• When you choose to enter Actual Vehicle Expenses instead of the Standard Mileage Deduction method, you will be guided through entering all of your expenses in the following pages. Enter repair costs on the page pictured in the 3rd screenshot I have attached below.

• Enter your rental car costs a few pages later, under Business Local Transportation on the page for Other Vehicle Expenses, as pictured in my last screenshot attached below.

[stephen6]

I'm not finding Other Vehicle Expenses page or the Business Local Transportation line item.  I'm using Home & Business version.

[Belling]

You have to choose that you want to use your actual vehicle expenses rather than the standard mileage deduction. Once you do this, it is only 3 pages later that you will land on the other vehicle expenses page, just keep clicking continue.

[ChrisVG]

I do not see the attachments that explain how to enter repairs and rental expenses for my business vehicle

[MarilynG1]

@ChrisVG See detailed post from @Belling above.

When you Edit your Vehicle in the Business Expenses section, you will come to a screen asking about 'Actual Expenses' (screenshot).

Click this link for more info on Business Use of Vehicles.