No, you cannot deduct the purchase of a vehicle. You can, however, claim either a standard mileage deduction or actual expense mileage for depreciation, gas, oil, maintenance, etc. If you use the actual expense method the expenses must be allocated between business and personal use.
These expenses would be reported on Schedule A with your itemized job expenses. Job expenses are deductible for the amount that exceeds 2% of your AGI. You will also need to have total itemized expenses that exceed your standard deduction in order to benefit from itemizing your deductions. The Standard Deductions are as follows based on your filing status:
- Single or Married Filing Separately $6,350
- Married Filing Jointly $12,700
- Head of Household $9,350
You will enter them by doing the following:
- Click Federal Taxes
- Deductions and Credits
- Scroll down click Show More next to Employment Expenses
- Click Start next to Job-Related Expenses
- You will be asked if you have any auto/vehicle expense. Select yes and continue through to enter your mileage and expenses. TurboTax will help you decide which method (actual expense or standard mileage) will benefit you most.
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