How do i report depreciation on new company vehicle? what section should i use to claim the depreciation?

[JamesG1]

To record depreciation expense in TurboTax Home & Business, follow these steps

• Go to Business / Business Income and Expenses / I'll choose what I work on / Business Income and Expenses.
• Click Edit to the right of the business entity.
• At the screen Your Business, scroll down to Business Assets.
• Click Start / Update  to the right of Assets being depreciated.
• Enter information at the screen Describe this asset.
• Enter information at the screen Tell us a little more.
• Enter information at the screen Tell us about this asset.
• Enter information at the screen Tell us more about this asset.
• Depreciation questions begin at the screen How do you want to deduct this item?

[Carolinayep121]

Thanks for the reply.

on section Describe this asset. there is not an option for Vehicle. should i select Other property?

[DawnC]

Enter the details for the vehicle in the Business Vehicle Expense section.   If you take the standard mileage deduction, the depreciation component is included.    If you use Actual Expenses, TurboTax will record the depreciation and fill out Form 4562.     Assets, other than vehicles, are entered directly into the asset section.   But vehicles have their own interview - there is more data that is needed when it comes to vehicle expenses, so they have their own section.  

[Karefree4Life]

What if I am reporting my side business on Schedule C? Where can I add my new vehicle purchase for the business for 2021? The car is used 50% for business. I don't see vehicle listed as an asset category under depreciation expenses. 

[AmyC]

Business vehicle expenses allows you to add a vehicle.

@Karefree4Life

[Karefree4Life]

@AmyC I don't see your screen on my software. I have Premier Turbotax desktop version. Where can I add the new vehicle based on my screen below? I am reporting my business on Schedule C of the 1040.

[Karefree4Life]

Sorry I clicked post too quickly. I can add the vehicle under the "Cars, trucks..." but where can I add the same vehicle for depreciation expense? The software is not calculating the new purchase amount for depreciation when I just add it to the "Cars, trucks..." section only. Also, after adding the new vehicle in this section, it is not prompting me to enter the purchase price of the vehicle. Can you advise if I also need to add this vehicle under the "Assets and depreciation" section as well, based on the screenshot I provided in the previous post? Thank you.

[JamesG1]

In TurboTax Online Self-employed, income and expense is reported on Federal 1040 Schedule C for self-employment income and expenses.

• Go to Federal / Income & Expenses / Your income and expenses / Self-employment income and expenses.   
• Click Start /Edit / Add to the right.
• Edit the self-employment activity.  
• At the screen Here's your info, scroll down to Add expenses for this work.  
• Add Vehicle.

Follow the screens and you will be asked to enter vehicle cost, miles, etc.  You may deduct a vehicle mileage rate or direct expenses of the vehicle including depreciation.  See this help.

Vehicle expenses may be taken:

• As a standard mileage rate, or
• As actual expenses which includes a depreciation component.

You are not able to claim both.

There are two ways to deduct your business-related vehicle costs: Actual expenses or the standard mileage deduction.  You select which method you want to use at the screen Do you want to take the standard mileage deduction for this vehicle?

Most people use the standard mileage method because it simplifies your recordkeeping. There's no need to keep gas receipts, repair bills, etc. Instead, you total your business miles for the year and apply the IRS mileage rate.

The actual expenses method requires you to add up all the money actually spent in the operation of your vehicle. TurboTax will take your total vehicle expenses and multiply them by the percentage of the vehicle’s business use to get the amount of your deduction.

Some of the costs you can include in your Actual Expenses are:

• Lease payments
• Auto insurance
• Gasoline
• Maintenance (such as oil changes, brake pad replacements, tire rotations)
• New tire purchases
• Title, licensing, and registration fees (not deductible in all states; we will check to see if this expense is deductible in your state)
• Vehicle depreciation