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Are you self-employed? If so, enter the vehicle in the expenses section of your business.
Maximizing Tax Deductions for the Business Use of Your Car
Standard Mileage vs Actual Expenses
If you are not self-employed, it is likely that this deduction is not available.
The business deductions on Form 2106 are allowed for Armed Forces reservist, a qualified performing artist, a fee-basis state or local government official, or an individual with a disability claiming impairment-related work expenses. All other taxpayers can no longer deduct these expenses beginning in tax year 2018. However, some states still allow the deduction. You would enter these expenses on your Federal return to carry to the state.
Follow these steps:
Was it used for business last year? If so, there are more things you need to consider. So please let us know.
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