I am self employed and august 2020 i purchased a New truck for work (80%). How do i write off this purchase. I know of the Sales Tax. but what about the rest of the $$

[ReneeM7122]

To write off the purchase of the truck, you would take a Section 179 deduction.  In TurboTax, it's found on Form 4562, Depreciation and Amortization.

You'll first need to enter your mileage but then elect to use actual expenses (not mileage even though TurboTax may say to take the mileage deduction). See step 13 below.  Then you will answer more questions and enter the value of your vehicle. Eventually you will get to the screen where you enter your Section 179 deduction (see step 15 below)

1. Click on Federal in the bar to your left
2. Under Income & Expenses tab at the top, click Review next to self employment income and expenses
3. On the screen Your 2017 self employment work summary, click Edit next to your business (if you have it  set up)
4. Click on Add Expenses for this work
5. On the screen Tell us about any expenses for business click on Vehicle and Continue at the bottom of page (Vehicle is in the Less Common Expenses near the bottom)
6. Did you use a car or truck for your business? Yes
7. On the screen Tell us about your business vehicle, enter your vehicle information
8. On the next screen, choose Yes I own this vehicle
9. On the next screen answer questions for Was this vehicle available for personal use in 2017?
10. On the next screen answer questions for Let's get some info about how you tracked your business and personal miles in 2017
11. On the next screen answer questions about How do you want to enter your mileage for your Truck? and enter your mileage
12. On the next screen answer questions How many vehicles did you use for your business?
13. On the next screen choose "I'll enter my actual expenses…
14. Continue answering through the screens, enter the purchase price of vehicle etc.
15. On the screen "How much do you want to deduct for the business use of this vehicle?" you can choose how much Section 179 deduction you want to take.

[1hai636-gmail-co]

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