How do I claim vehicle expenses for my business or rental?

Go to the business or rental property where you used the vehicle. If you used the vehicle for more than one activity, start with the business/rental with the most number of business miles.

• For a Schedule C business, search for schedule c and select the Jump to link.
• For a rental property, search for rentals and select the Jump to link.
• You can also select Tax Tools in the left column. Next select Tools, then Topic Search. Enter your topic, select the topic in the list, and then go directly to the start of that section. 

1. Add or edit your business or rental property.
2. Continue through the questions to the Business/Rental Expenses list.
3. To add a vehicle, select Add Expense then select the box for Vehicle and continue.
4. Under Expenses, select Vehicle then edit the vehicle you need to work on.
5. Continue to enter the vehicle information, including mileage.
   • You can enter actual total miles from your vehicle log, or you can enter beginning and ending odometer readings. 
   • You’ll also need to enter the miles you drove for business purposes (from your vehicle log or app).
6. Choose to see if actual expenses give you a bigger deduction. TurboTax will compare the two options so you can decide which is better.
7. Enter your actual vehicle expenses (gasoline, insurance, licence fees, maintenance, etc.). Select the Learn More links for additional information.
8. If your business miles are more than 50% of the total miles, you will be given some depreciation options.
   • If you purchased the vehicle new, you have the option to take the Section 179 deduction for some or all of the purchase price (depending on the vehicle limits). You may also claim Special Depreciation for the balance (up to 60% for tax year 2024). After that, regular depreciation would apply. 
   • If you purchased the vehicle used or have less than 50% business use, only ADS straight line (SL) depreciation will be available for this vehicle. See IRS Publication 946 under Excepted Property rules.
9. Choose either the standard mileage rate or actual expenses for this vehicle.
   Note that if you choose actual expenses the first year you use the vehicle for business, you must always use that method.
10. Enter any other vehicle expenses (parking, tolls, etc.).
11. TurboTax will summarize your deduction for the year.

Go to the business or rental property where you used the vehicle. If you used the vehicle for more than one activity, start with the business/rental with the most number of business miles.

• For a Schedule C business, search for schedule c and select the Jump to link.
• For a rental property, search for rentals and select the Jump to link.
• You can also select Show Topic List on the top right and select the section or sub-section you are looking for. 

1. Add or edit your business or rental property.
2. Continue through the questions to the Business Expenses list or the Business/Rental Summary page.
3. For a business, select Business Vehicle Expenses or Cars, trucks, and other vehicle expenses, depending on your version of TurboTax. For a rental property, select Vehicle Expenses.
4. Add a vehicle (or edit an existing vehicle).
5. Continue to enter the vehicle information, including mileage.
   • You can enter actual total miles from your vehicle log, or you can enter beginning and ending odometer readings. 
   • You’ll also need to enter the miles you drove for business purposes for this business or rental property (again, from your vehicle log or app).
6. Choose to see if actual expenses give you a bigger deduction. TurboTax will compare the two options so you can decide which is better.
7. Enter your actual vehicle expenses (gasoline, insurance, licence fees, maintenance, etc.). Select the Learn More links for additional information.
8. If your business miles are more than 50% of the total miles, you will be given some depreciation options.
   • If you purchased the vehicle new, you have the option to take the Section 179 deduction for some or all of the purchase price (depending on the vehicle limits). You may also claim Special Depreciation for the balance (up to 60% for tax year 2024). After that, regular depreciation would apply. 
   • If you purchased the vehicle used or have less than 50% business use, only ADS straight line (SL) depreciation will be available for this vehicle. See IRS Publication 946 under Excepted Property rules.
9. Choose either the standard mileage rate or actual expenses for this vehicle.
   Note that if you choose actual expenses the first year you use the vehicle for business, you must always use that method.
10. Enter any other vehicle expenses (parking, tolls, etc.).
11. TurboTax will summarize your deduction for the year.

If you use actual expenses for the vehicle in the first year you use it for business, you can't switch to using the standard mileage rate. You must continue using actual expenses as long as you use that car for business.

However, if you use the standard mileage rate in the first year, you can switch between actual expenses and standard mileage rate in future years. 

If you use the standard mileage rate, you must have records of business versus personal miles driven.

If you use actual expenses, you must have records of all expenses and must allocate those between business and personal use.