I am self-employed and in 2019 purchased a vehicle that is eligible for bonus depreciation of the full purchase amount. How to enter that in TT?

[VictoriaD75]

Depreciation on vehicles is a little different than other business assets. You are limited to $18,100 with bonus depreciation for 2019. Just enter the vehicle as a business asset, and the software will help you determine your depreciation.

 Follow these steps:

• From the Federal menu, click on Income & Expenses
• Expand the menu for Self-Employment
• Click Start/Revisit next to Self-employment income & expenses
• Edit next to the business
• Click Review next to Vehicle
• Enter the information on the screens that follow

Business Use of Vehicles

Vehicle Depreciation Limits

[okihatethis]

Cannot do it in TT Self Employed. I have repeatedly tried. I enter the purchase price of the vehicle and TT walks me through all the steps and then tells me that I can deduct the actual costs (like tolls, oil changes, but NOT the purchase price) or the mileage. Is there no way to go directly to Form 4565 and enter this myself? 

[VictoriaD75]

Are you taking the standard mileage deduction? If so, depreciation is already calculated into the deduction and cannot be taken separately.

Maximizing Tax Deductions for the Business Use of Your Car

Standard Mileage vs Actual Expenses

[mlniemiec]

I have the Home and Business version.  There is no "self employment" section under my business income.  When I go into the "add assets" it specifically asks "did you buy, or do you already own, any depreciable assets related to this business (other than vehicles?).  I did not enter in vehicle expenses.

I purchased a cargo van (with the caging, but it's under 6000 GVW) - so how do you add this vehicle in?  

thanks,

[VictoriaD75]

You need to enter the information in the Vehicles section of the business expenses. 

To enter vehicle expenses on Schedule C:

1. Select "Business" at the top of the screen

2. Choose "Continue", then "I'll choose what I work on"

3. Select "Start" next to "Business Income and Expenses"

4. Select "Edit" next to your business name

5. Scroll down to Business Expenses

6. Now select "Start" next to "Business Vehicle Expense"

7. Select "Edit" next to your vehicle(or enter the information when asked to)

8. Continue until you arrive to the screen asking for mileage and make any changes

9. After entering your mileage you should arrive to a screen asking "Do You Want to Enter Your Actual Expenses?", answer "No". This will give you the standard mileage deduction

For more information on claiming your mileage visit this link: Business Use of Vehicles