Article: 50019

Schedule E Rental

To deduct vehicle expenses for a rental, first add the Schedule E screen to your return by following these steps:

• Click Federal Taxes > Review > I’d like to see the forms I’ve filled out or search a form.
• In the search box, enter “Schedule E.”
• Click Add Form beside Schedule E – Supplemental Income – Rent, Royalties, Etc.
• Complete the top informational section; you can also complete the Income fields at this time or come back to the form and do it later.
• Click Save at the bottom of the form.

Now add vehicle information by following these steps:

• Click Federal Taxes > Review > I’d like to see the forms I’ve filled out or search a form.
• In the search box, enter “vehicle.”
• Click Add Form beside Your Business Vehicle.
• Select the option This isn’t for a business.
• On the question, Did you use your vehicle in a real estate rental business? select Yes.
• Select the rental business from the list of options.
• You can enter just mileage, or mileage and expenses.
  • If you enter both mileage and expenses, elect the standard mileage rate method by just entering the number of business miles you’re claiming.
  • If using the actual expenses, the next section has fields for all the vehicle expense categories – gas, oil, insurance, repairs, and even tolls.
• If you qualify for both methods of deduction, and you have the records to back it up, you may want to figure out your deduction both ways to find which gives you the best overall deduction.

Schedule C Business

To take a vehicle expense deduction for a business, first add the Schedule C – Business Income and Expenses screen to your return by following these steps:

• Click Federal Taxes > Review > I’d like to see the forms I’ve filled out or search a form.
• In the search box, enter “Schedule C.”
• Click Add Form beside Schedule C – Self-Employment Income.
• Complete the top informational section; you can also complete the Income fields at this time or come back to the form and do it later.
• Click Save at the bottom of the form.

Now add vehicle information by following these steps:

• Click Federal Taxes > Review > I’d like to see the forms I’ve filled out or search a form.
• In the search box, enter “vehicle.”
• Click Add Form beside Your Business Vehicle.
• Select the business that it relates to from the list of options.
• You can enter just mileage, or mileage and expenses.
  • If you enter both mileage and expenses, elect the standard mileage rate method by just entering the number of business miles you’re claiming.
  • If using the actual expenses, the next section has fields for all the vehicle expense categories – gas, oil, insurance, repairs, and even tolls.
• If you qualify for both methods of deduction, and you have the records to back it up, you may want to figure out your deduction both ways to find which gives you the best overall deduction.

Business Mileage

When doing ride-share or deliveries for companies like Uber (Eats), Lyft, or DoorDash, you are considered an independent contractor. As such, you can claim your business mileage by adding Schedule C (self-employment income) to your return and tying your 1099-NEC to it. To do so:

1. Go to Federal Taxes > Review > I’d like to see the forms I’ve filled out or search for a form. Enter Schedule C in the search box and add Schedule C – Self-Employment Income.
2. Enter information regarding the company you are contracted to. Leave the rest of the form blank and save it.
3. Go to Federal Taxes > Review > I’d like to see the forms I’ve filled out or search for a form. Enter NEC in the search box and add Form 1099 – NEC.
4. When asked Is this income from your business?, choose the applicable business for which you created Schedule C. Complete and save all information.
5. Go to Federal Taxes > Review > I’d like to see the forms I’ve filled out or search for a form. Enter Vehicle in the search box and add Your Business Vehicle.
6. When asked Did you use this vehicle in your business?, choose the applicable business for which you created Schedule C and Form 1099-NEC, and follow the mileage prompts.