How do I write off the purchase of a business vehicle?

[Coleen3]

You have the option of taking standard miles or actual expenses. You would generally take the one that benefits you the most. However, if you claim the standard mileage rate in year one for this vehicle, you will have the option of deducting the standard rate or actual expenses in subsequent years. If you claim actual vehicle expenses in year one, you must choose actual expenses in every subsequent year for that auto.

You can deduct 54.5 cents per mile or actual vehicle expenses (ie. gasoline. oil, tires, maintenance) prorated for business miles.

To enter vehicle expenses in TurboTax Self Employed:

Type in schedule c in the search box, top right of your screen

Click on the first category Jump to schedule c link

Follow the prompts and online instructions

Arrive at the Your Business page

• Scroll down to the Business Expense category

• First category is Business Vehicle Expense

• Click Start or Update to make your entries