Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 

I want to start deducting car costs, how do i add my car if I didn't purchase it last year?

 
1 Reply

I want to start deducting car costs, how do i add my car if I didn't purchase it last year?

You'll have to make a reasonable estimate on the Fair Market Value (FMV) of your car on the date you started using it for work/business use.

 

One way you could get an estimate would be to use the actual purchase price less the amount you would have claimed for CCA if you had used it starting when you bought it.

 

As an example, if you bought the car in Oct 2020 for $29k, but didn't start using it for work until April 2021:

  • $29,000 x 15% (half year rule) = $4,350 (this is the amount you could have claimed in 2020).
  • $29,000 - $4,350 = $24,650 Use this figure as the cost of your "addition" for 2021.