What is the best option for EV credit? Im eligible for full $7500 on federal cridit but should I show as business depreciation as well?
Yes, you can do both. Turbo tax will walk you through this asking the percentage of business use.
You will have to enter the percentage of business/investment use and decide if you are using a section 179 deduction.
If the vehicle is used for both business purposes and personal purposes, determine the percentage of business use by dividing the number of miles the vehicle is driven during the year for business purposes or for the production of income (not to include any commuting mileage) by the total number of miles the vehicle is driven for all purposes. Treat vehicles used by your employees as being used 100% for business/investment purposes if the value of personal use is included in the employees’ gross income, or the employees reimburse you for the personal use. If you report the amount of personal use of the vehicle in your employee’s gross income and withhold the appropriate taxes, enter “100%” for the percentage of business/investment use.
Full instructions:
https://www.irs.gov/pub/irs-pdf/i8936.pdf
The form:
https://www.irs.gov/pub/irs-pdf/f8936.pdf
If you have another question about this, ask in the comment box below.
I need to update the percentage used for business purposes for my vehicle, however, I cannot find this field anywhere in Turbo Tax Business! I know I was asked the question when I was initially entering my deductions, but I can't find here to change it after the fact. I've gone through the entire section of vehicle deductions, but it only asks for the different amounts for each category -- nothing about the percentage use for business. Help!
You need to get back to the interview section of vehicle expenses.
Here is how to edit your vehicle percentage.
Go back into self employment income
click EDIT
Choose Vehicle expenses
The vehicle summary will appear
click edit
You will see "Tell us about your business vehicle"
Start there and go through each entry
Make change and continue
You can only deduct vehicle expenses on a Schedule C Business. In 2017 and earlier tax years, employees could get a partial deduction for expenses incurred while commuting between multiple job sites during the same day, as well as commutes to temporary work locations. They could also claim costs for non-commuting work-related trips, such as attending an offsite meeting or running an errand for the company. However, these expenses are no longer deductible in tax years 2018 through 2025 due to the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017.