Yes, you can list the car you bought with cash as an asset if you use it for business purposes.
Where you report the car depends on the type business in which you are using it. If you are self-employed and report your business on Schedule C, this is how to add your car:
- Select Federal on the left side menu.
- Under Wages & Income, find Self-employment income and expenses.
- Select Start or Revisit to the right.
- On the screen titled, Your 2022 self-employed work summary, select Edit to the right of your self-employment entry.
- Scroll down to Expenses.
- Select Edit to the right of Vehicle. If you don't see Vehicle, click on Add expenses for this work. Scroll down and find Vehicle, select Add just below.
- Scroll down and click Continue in the lower right corner.
- Scroll down to Expenses.
- Select Edit to the right of Vehicle.
- Answer the questions to add your vehicle costs and mileage.
If you use the car in a different type of business, please respond back with more details about what you are doing.
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