Vehicle lease end and purchase Schedule C

[dclabbers]

When business use vehicle lease ended, I then purchased the vehicle. I am baffled how to enter this in Turbotax Home and Business. Do I record the vehicle as stop use, with date of lease end, and then 'add vehicle' and record the same vehicle as a used vehicle 'new' purchase? 

Also, can I then use standard mileage, since it is first year of owned vehicle?

Thank you!

[maglib]

@dclabbers 

The leased vehicle answer I stopped using this vehicle for business in 2022, and add another separate instance of the vehicle that starts from date of purchase with the actual cost.  You bought it used.

It will ask you if this is the first year for business and you must say no.   if you went with the actual expenses method in the first year, you’re not allowed to change from that as long as you drive that vehicle for business purposes.  It is the same vehicle.  

If you lease a car you use in business, you may not deduct both lease costs and the standard mileage rate. You may either:

• Deduct the standard mileage rate for the business miles driven. If you choose this method, you must use the standard mileage rate method for the entire lease period (including renewals).
• Claim actual expenses, which would include lease payments. If you choose this method, only the business-related portion of the lease payment is deductible.

If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use either the standard mileage rate or actual expenses.

If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. For leases that began on or before December 31, 1997, the standard mileage rate must be used for the entire portion of the lease period (including renewals) that is after 1997.

You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. You can’t revoke the choice. However, in later years, you can switch from the standard mileage rate to the actual expenses method. If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation for the car’s remaining estimated useful life, subject to depreciation limits (discussed later).

More details can be found https://www.irs.gov/publications/p463