topic Can my spouse and I switch cars for business use? in Deductions & credits

Can my spouse and I switch cars for business use?

wsirhc1 — Mon, 23 Feb 2026 10:55:58 GMT

So my wife and I both bought new cars around the same time. Last years return, she claimed her SUV for business use and I claimed my CAR for business use. Now this year we have switched, I use the SUV and she uses the CAR. How do we account for that on this years taxes? She is self-employed and I am salaried.

Re: Can my spouse and I switch cars for business use?

Anonymous_ — Thu, 12 Jan 2023 14:43:18 GMT

@Mike9241 might know the mechanics of doing this.

Re: Can my spouse and I switch cars for business use?

JohnB5677 — Mon, 16 Jan 2023 18:35:28 GMT

Yes, you can change cars. You are on salary, so you should not have taken any deduction for the car. Your wife is self employed, and probably did take a deduction for the SUV.

The SUV will be included in the assets of your wife's schedule C. It will make a difference if you used standard mileage rates, or if you posted actual cost. If you took standard mileage rates you can simply add the car. If you used actual cost you will have to dispose of the SUV, and then add the car (Depreciation would be a factor).

Go to the Business section of the return.

Select Business Assets
Yes, go to the asset summary
Select the account you want to clear and dispose of it.