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New Member
posted Jun 1, 2019 8:18:14 AM

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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5 Replies
Level 15
Jun 1, 2019 8:18:16 AM

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.

New Member
Jun 1, 2019 8:18:18 AM

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

Level 15
Jun 1, 2019 8:18:20 AM

I should have asked this first: Are you self-employed and filing a Schedule C? Or are you a W-2 employee?

New Member
Jun 1, 2019 8:18:21 AM

I'm self employed and filing a Schedule C.

Level 15
Jun 1, 2019 8:18:23 AM

Click the Business tab and go to Business Income and Expenses> Business Expenses> Business Vehicle Expense.