Can I deduct the cost of purchasing a vehicle if I mainly use it for work?

[dancrow]

I have a job that requires a vehicle to go to and from clients' houses. I purchased a used vehicle since my previous one was unreliable. Can I put the expense of the vehicle somewhere in my tax return? I used the vehicle for personal use as well but mileage wise I put 10 times more work miles on it than personal miles.

[LinaJ2018 · Accepted solution]

You cannot deduct the cost of purchasing your vehicle. However, you can deduct the sales tax you paid.

To enter the sales taxes paid on your vehicle in TurboTax online program, go to:

• After sign in and select Pick up where you left off
• At the right upper corner, in the search box, type in sales tax then Enter 
• Select Jump to sales tax 
• On-screen, Sales Tax and Income Tax - select Continue with Sales Tax
• On-screen, How do you want to enter your sales tax info? , select EasyGuide and follow the prompts.

-Your refund will change only if your total sales tax deduction is more than the state income taxes and you are itemizing instead of taking the standard deduction. 

As an employee, you cannot deduct any unreimbursed job-related expenses on your Schedule A anymore.  

Due to the new tax law change the Tax Cuts and Jobs Act, ( TCJA), for 2018 through 2025, Congress suspends all miscellaneous itemized deductions ( Form 2106) that are subject to the 2 percent of adjusted gross income floor. This change affects un-reimbursed employee expenses such as job-related travels, uniforms, union dues and the deduction for business-related meals and entertainment.  You will not be able to deduct any unreimbursed employee expenses on your 2019 tax return. 

If you are self-employed, you will need to upgrade to TurboTax Self-Employed to complete the transaction

• Across the top, in the search box, type in schedule c and Enter 
• Select Jump to schedule c
• Follow prompts to upgrade

[dancrow]

Thank you very much for your reply! This helped.