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Passive Income and deducting car repairs costs and depreciation with actual method

I am planning on having rental properties and getting passive income. This would be my sole source of income.

I see on Schedule E Line 6, you can deduct auto expenses (I would choose actual method). Can you also deduct car depreciation on that line as well?

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1 Reply
MinhT1
Employee Tax Expert

Passive Income and deducting car repairs costs and depreciation with actual method

Yes, if you use your vehicle for visiting your rental property and choose to deduct actual expenses, you can deduct depreciation for your vehicle.

 

However, you have to determine the business use percentage of your car and you can only the business use portion of actual costs.

 

Please read this TurboTax article for more information.

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