Your truck and trailer would be considered depreciable assets for your business. Depreciation assumes that assets used to generate business income will wear out, get used up, or become increasingly obsolete over a period of time. For taxation purposes, depreciation lets you deduct the "used up" portion of that asset's cost every year, until the entire cost is used up or the business no longer owns the asset.
To enter your truck:
- Click the Business tab
at the top
- Then, you
may see Continue,
then I'll choose what I work on
- Under the
"Business Income and Expenses" section, next to "Profit or
Loss from Business", click Start or Update/Revisit
--If you haven't input your business
information already, you will be prompted to at this point
--Or, if you land on the "Here's the business info we have so
far" page, click Edit next to your Business
- From the
"Your Business" page, scroll down to the "Business
Expenses" section.
- Select the Business Vehicle Expense section - You will be guided towards
best overall deduction using either actual expenses (including
depreciation) or based on miles driven and mileage rate.
To enter your trailer purchase, follow steps 1-3 above, then the following:
- Scroll down to the "Business Assets"
section. Next to "Assets Being Depreciated" click Start or Update/Revisit
- Answer Yes to the first question, then follow the on-screen
prompts to enter information about your purchases.
For more
information, please see the following TurboTax FAQ:
https://ttlc.intuit.com/replies/3302228
