Need to take BOTH the standard mileage rate AND actual expenses

I own/manage/maintain three rental properties. They have always shown a profit. In prior years, I always used my personal vehicle to maintain my properties, and took the standard mileage rate deduction.

For tax year 2018, I used my personal vehicle for most of the year, but in October 2018, I bought a truck that I will use 100% for my rental properties (yes, I have other personal vehicles).

How do I take the standard mileage deduction for mileage driven with my personal vehicle for the first three quarters of 2018, and then take the actual expenses for the truck I bought in October 2018? Again, these are different vehicles.

For vehicle expenses, it seems to be an either/or - I take the standard deduction, or I use actual expenses. That seems like it only works if you buy your business vehicle on January 1st.

Appreciate any tips, thanks!

588

1 Best answer

Intuit Alumni

Jun 3, 2019 11:18:23 AM

With TurboTax open

Enter car and truck expense rental in the find box.
Select Jump to car and truck expense rental, in the results box.
Continue to Rental and Royalty and select edit for the property that the old truck is expensed against.
Then select Vehicle Expenses on the next page and select edit for your vehicle.
On the page Tell us about your vehicle, check the box I stopped using this vehicle in 2019 and enter the date you stopped using the vehicle. Continue to enter your 2019 vehicle info.
When you are finished enter your new vehicle and its information.

[Edited 03/10/2020 | 12:59 pm PDT]

Intuit Alumni

Jun 3, 2019 11:18:23 AM

With TurboTax open

Enter car and truck expense rental in the find box.
Select Jump to car and truck expense rental, in the results box.
Continue to Rental and Royalty and select edit for the property that the old truck is expensed against.
Then select Vehicle Expenses on the next page and select edit for your vehicle.
On the page Tell us about your vehicle, check the box I stopped using this vehicle in 2019 and enter the date you stopped using the vehicle. Continue to enter your 2019 vehicle info.
When you are finished enter your new vehicle and its information.

[Edited 03/10/2020 | 12:59 pm PDT]

Returning Member

Jun 3, 2019 11:18:24 AM

Thanks TurboTaxLeonard! I was working through it last night, and stumbled across the same thing, so I appreciate you confirming my guesses. 🙂

So, where the actual expense method gets confusing is I have to enter the same vehicle info three times (once for each of my rental properties). It feels like I should be able to enter the vehicle info once (since it's the same vehicle), and then attribute percentages to each rental property. Not sure if it's Turbo Tax making it work this way, or if that's how the federal forms are laid out.

Again, thank you!

Intuit Alumni

Jun 3, 2019 11:18:26 AM

You are welcome !

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Need to take BOTH the standard mileage rate AND actual expenses