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Purchasing a car and taxes

Conbad99

Active Member
Sorry if this has been answered already. I bought a used car for 16K. I put $5000 down and financed the rest so I am paying around $325 a month for car payment. I bought the car in october and I am wondering, can I expense the whole $5000 I paid in october on my taxes for 2018? I use this car for rideshare only, thats why I bought it. Thanks in advance
 

UberTaxPro

Well-Known Member
Sponsor
Sorry if this has been answered already. I bought a used car for 16K. I put $5000 down and financed the rest so I am paying around $325 a month for car payment. I bought the car in october and I am wondering, can I expense the whole $5000 I paid in october on my taxes for 2018? I use this car for rideshare only, thats why I bought it. Thanks in advance
You've got a choice to make for your 2018 taxes. You must pick between the actual expense method and the standard mileage method for your vehicle expenses. Yes, you could write off most of the 16K that you spent on the vehicle for 2018 but it might not be the best thing for you to do. To do that you'd have to use the actual expense method which comes with other issues that you'll face in 2019 and on. You really need to plan ahead for 5 years when you decide which method to use. Don't be tempted by the results for 2018, be sure you or your preparer are aware of the future year implications if you decide to write off the 16K in 2018.
 

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