How do I add the purchase of a new vehicle?

[Vanessa A]

If it is a personal purchase, you generally would not add it unless you are itemizing and taking a sales tax deduction.  If this is the case, then you will enter this under Deductions and Credits>>Sales Tax

If this is for business, then you will enter this as a vehicle expense.  When you walk through the vehicle expenses, it will ask you if you purchased it.  Say yes or check the box and then TurboTax will walk you through the options available for depreciation or taking expenses. 

[xmasbaby0]

You do not add purchasing a new vehicle for personal use unless it is an EV or if you are itemizing deductions and want to enter the sales tax.   If you are self-employed you enter information about your vehicle on your Schedule C with other business expenses.

SALES TAX

You can enter the sales tax you paid for the car you purchased in 2024 by going to Federal>Deductions and Credits>Estimates and Other Taxes Paid> Sales Tax.  You will be asked if you paid sales tax on a major purchase, and you will be able to enter the sales tax you paid for your new vehicle. 

Sales tax is an itemized deduction.  Unless you have enough other itemized deductions to exceed your standard deduction the sales tax will have no effect on your tax due or refund.

“Major purchases” that you can enter for the sales tax deduction include:

Motor Vehicles (cars, trucks, motor homes, RV’s, sport utility vehicles and off-road vehicles

Aircraft or boats

Mobile homes

Manufactured housing

Building materials for major home improvements

You cannot deduct: furniture, jewelry, home electronics such as TV’s or computers