topic Car Depreciation Basis in Get your taxes done using TurboTax

Car Depreciation Basis

jksbagay — Fri, 30 Jan 2026 05:40:13 GMT

Hi, I leased my car back in October 2023 and purchased it through bank financing come September 2024. How should I answer the question - How much did you pay for this vehicle? - under the depreciation basis question in TurboTax? Technically, I was only leasing it in October 2023. Should I refer to the Gross Capitalized Cost on my Lease Agreement? Thank you.

Re: Car Depreciation Basis

RobertB4444 — Mon, 02 Feb 2026 16:47:21 GMT

Assuming that the leasing company took your lease payments as payments towards the purchase of the car then yes, you can use the cost from the lease agreement. If, however, there was a separate sales agreement that occurred after the lease ended then your lease payments are not counted as car payments and you would take the value from the sales agreement after the lease ended.