I bought a car I exclusively use for business in 2023. Transportation is necessary for my business operation. I know where to deduct miles driven for business and related car expenses. Where specifically do I deduct the cost of the car?
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Setup the business profile first if 2023 was the business's first year.
Select EDIT for that business
Scroll down to "Business Expenses"
Scroll down under that to "Business Vehicle Expenses" START or UPDATE
Select "Add a Vehicle"
Continue through the interview to add the vehicle, costs, and take a different depreciation (such as Bonus Depreciation) if eligible.
I previously chose standard mileage deduction under "vehicle summary." If I go back and choose actual expenses it allows me to add the value of the car for that deduction. My question now is can I stick with standard mileage deduction and add the cost of the vehicle in another location such as "Other Common Business Expenses"?
No, you can only use the mileage allowance or the actual cost of the vehicle and it's operation, you can't do both.
It does not give me an option for PURCHASED a new vehicle for the business, merely the mileage and others costs. Is there a way to enter a NEWLY PURCHASED vehicle?
When you first go through the vehicle section , if you're using TurboTax Premium Online, you'll answer questions about what kind of vehicle it is and your business mileage. At first, you'll be shown what your deduction would be using the standard mileage rate.
On that same screen, Now let's select your vehicle deduction, if you check I want to enter my actual expenses without estimating them first, and answer the questions and input your information on each screen, you'll reach: Did you purchase your vehicle new? and you will proceed through a series of questions about the cost of the vehicle, when you purchased it, etc., to compute depreciation.
You have to go through each screen completely before you get to the section about the purchase price of the new vehicle. The screens are similar if you are using a Desktop version of TurboTax.
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