How do I correct the purchase price of my vehicle?

[mjk25]

It was entered incorrectly.

[BrittanyS]

If you are needing to change the purchase price of the vehicle on the Schedule C, for self-employment use, you will follow these steps:

1. Log in to TurboTax
2. Click Income
3. Click Edit next to Self-employment
4. Click Edit under Expenses
5. Click Edit next to Vehicle (the interview questions will start over, continue until you see "OK.  Let's figure out the value of your vehicle" (see screenshot below)

The IRS will use the vehicle purchase price to calculate the depreciation of the vehicle.  Here is what the IRS states about depreciation, "Generally, the Modified Accelerated Cost Recovery System (MACRS) is the only depreciation method that can be used by car owners to depreciate any car placed in service after 1986. However, if you used the standard mileage rate in the year you place the car in service and change to the actual expense method in a later year and before your car is fully depreciated, you must use straight-line depreciation over the estimated remaining useful life of the car. There are limits on how much depreciation you can deduct. For additional information on the depreciation limits, please refer to Topic no. 704. Publication 463 explains the depreciation limits and discusses special rules applicable to leased cars."

See the link below for more information:

• Depreciation