Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
dab-conservation
New Member

Can we deduct $20,000 down payment on a new car, (88%) business use? Confused about depreciation of an asset vs the standard mile deduction, etc.

 
1 Best answer

Accepted Solutions
DS30
New Member

Can we deduct $20,000 down payment on a new car, (88%) business use? Confused about depreciation of an asset vs the standard mile deduction, etc.

No you will not be able to deduct the down payment for a vehicle.

As for claiming business use of a vehicle, you can choose to take either the standard mileage rate set by the IRS (.54/mile for 2016) or you can take the actual expenses (gas, repairs etc) including depreciation. The depreciation is based on the total value of the vehicle but you are only allowed to claim a business depreciation expense on the business use percentage of the vehicle.

For more information, please click  IRS - Business Use of Car

View solution in original post

1 Reply
DS30
New Member

Can we deduct $20,000 down payment on a new car, (88%) business use? Confused about depreciation of an asset vs the standard mile deduction, etc.

No you will not be able to deduct the down payment for a vehicle.

As for claiming business use of a vehicle, you can choose to take either the standard mileage rate set by the IRS (.54/mile for 2016) or you can take the actual expenses (gas, repairs etc) including depreciation. The depreciation is based on the total value of the vehicle but you are only allowed to claim a business depreciation expense on the business use percentage of the vehicle.

For more information, please click  IRS - Business Use of Car

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.48m
Members

2.61m
Discussions

Manage cookies
v