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Level 2
posted Jul 30, 2020 7:30:20 AM

If I use Turbotax to file my taxes and am forced to use the actual expense method for deductions, if I fill 0, will I be able to use the standard method in the future?

I am self employed but use a car that is not under my name. Therefore, I can not use the standard deduction method and must use the actual expense method. I am wondering if I were to just leave the expenses blank on Turbotax (thus not deducting my mileage at all), will I be able to use the standard method in the future?
I read that if I use the actual expense method, I must keep using that method. Therefore, I am wondering if I can just leave the boxes blank and then use the standard method in the future? Or will I still be forced to use the actual expense method?

0 1 358
1 Replies
Level 15
Jul 30, 2020 7:35:25 AM

Assuming this is for a SCH C business that you own, you will not report anything in the Business Vehicle Expenses section if this is for a car you do not own. Instead, you will enter transportation costs in the Common Business Expenses section, in the sub-section for Transportation Expenses. (Assuming it was a rental car and not a car you borrowed from a friend or family member.)