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cls0ngs
New Member

Are car maintenance costs deductible and where do they go?

I'm self-employed. I drive to client homes to complete the jobs.
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2 Replies

Are car maintenance costs deductible and where do they go?

as vehicle expenses in the schedule C section.  however, you must choose between the standard mileage deduction and actual expenses.  

JosephS1
Expert Alumni

Are car maintenance costs deductible and where do they go?

As Mike9241 says, vehicle expenses are deducted on Schedule C and if this is a new vehicle for the business you must choose between the standard mileage deduction and the actual expenses, including depreciation.  The link and screen capture below should be of assistance to you in determining which method will be the best for you to utilize:

 

If the vehicle has not been previously entered, you can enter the truck as part of your Schedule C.  You can choose to enter the truck for depreciation purposes and detailed costs for operating the truck such as gas, tires, oil, repairs, etc.  If you choose the standard mileage rate you must choose it in the first year you use the vehicle for business.  In later years you can choose between the standard mileage rate and actual costs.

 

The steps to enter the truck are shown below:

  1. Go to the Wages and Income section under the Federal tab.
  2. If you have already entered the information for your business, locate the listing for Self-Employment Income and Expenses and click on Edit/Add
  3. If you have not already entered your business information, scroll down to where is shows Self-Employment and click on Show more and answer the questions.
  4. Locate your business and click on edit if you have already previously entered or add expenses if you have not.
  5. There will be a number of expenses listed, to add the truck, scroll down to Vehicle and continue from there.  There will be a substantial number of questions to answer so please have patience as we want to be sure you receive the highest deduction available to you.

 

 

Put a checkmark in the box to the left of Vehicle and then scroll down and click Continue.  You will see the vehicle bar showing on the right and then click on Start and begin to answer the questions.

 Can I switch between standard mileage rate and actual costs?

Self-Employed Business Expenses

 

@cls0ngs

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