Vehicle purchase for work use

transitions210 — Wed, 30 Oct 2024 17:38:55 GMT

I recently purchased a vehicle to be used 95% as a rideshare driver. Is the vehicle purchase price deductible? What else can I deduct regarding the vehicle?

Re: Vehicle purchase for work use

dev145 — Wed, 30 Oct 2024 17:58:00 GMT

Hello transitions210,

Yes, if you used personal vehicle for business, you can claim certain expenses. IRS has two separate methods to claim vehicle use. 1. Standard Mileage - You get a fix amount (set by IRS each year) for each mile drove for business purpose. 2. Actual expense - you deduct gas, repairs, insurance, depreciation etc. expenses for business use. With actual expense, you can deduct purchase price ( amt. will depend on business use %). There is something called section 179 deduction and bonus depreciation that you can use to deduct vehicle if you qualify. Please note, if business use drops below 50% or if you sell the vehicle, you will have to recapture special and bonus depreciation taken in prior years. See below links for more info. about these topics.

https://www.irs.gov/publications/p946

https://www.irs.gov/taxtopics/tc510

https://www.irs.gov/faqs/sale-or-trade-of-business-depreciation-rentals/depreciation-recapture/depreciation-recapture-2

https://turbotax.intuit.com/tax-tips/rental-property/depreciation-recapture-definition-calculation-and-examples/c5H96UGw8?srsltid=AfmBOopZMNOfJB-j6t1aOr_k8HVUUfV8q8eiVCYp6rRT-WkmRiNlC6Bh

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Vehicle purchase for work use

Re: Vehicle purchase for work use