I know I can deduct sales tax and car payments on a leased car for business but can I deduct my down payment I paid for the car?
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New Member

I know I can deduct sales tax and car payments on a leased car for business but can I deduct my down payment I paid for the car?

 
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Level 14

I know I can deduct sales tax and car payments on a leased car for business but can I deduct my down payment I paid for the car?

You can deduct the advance or down payment required to lease your business vehicle, but you must spread the deduction out equally over the entire lease period.

If the vehicle has both business and personal use, you must pro-rate your deductions accordingly.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

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New Member

I know I can deduct sales tax and car payments on a leased car for business but can I deduct my down payment I paid for the car?

Thank you for answering!  Can you direct me to where I can enter this in Turbo Tax?  
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Level 14

I know I can deduct sales tax and car payments on a leased car for business but can I deduct my down payment I paid for the car?

I should have asked this first: Are you self-employed and filing a Schedule C? Or are you a W-2 employee?
**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

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New Member

I know I can deduct sales tax and car payments on a leased car for business but can I deduct my down payment I paid for the car?

I'm self employed and filing a Schedule C.
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Level 14

I know I can deduct sales tax and car payments on a leased car for business but can I deduct my down payment I paid for the car?

Click the Business tab and go to Business Income and Expenses> Business Expenses> Business Vehicle Expense.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

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