The IRS allows two methods for calculating vehicle expenses. You can either use Actual Expenses, including depreciation of the vehicle, OR the Standard Mileage Rate. The Standard Mileage Rate is updated each year.

1.  If you have not done so already, add the form you want to carry the vehicle expenses to. For example, if the vehicle expenses are to be carried to a Schedule C, add the Schedule C to the tax return.

2.  Press CTRL+N to open the All Forms & Schedules window to the Depreciation tab.

3.  Double-click Car/Truck to open the Business Activity Asset window.

4.  Click New Asset to add a new vehicle.

5.  In the Description box, type a description of the vehicle.

6.  In the Date Placed in Service, type the date the vehicle was placed in service.

7.  Select the appropriate Business Asset Class and then click OK to open the Choose Asset Class window.

8.  Enter the original cost or basis. Note: CrossLink requires at least $1 for cost or basis.

9.  Complete the questions that appear in the Choose Asset Class window. If you are claiming standard miles, the questions must be answered as demonstrated below. The last question is not available if the vehicle was placed in service during the current tax year.

10.  Click the Mileage/Expenses tab.

11.  Enter the total vehicle mileage, total commute mileage, and average daily commute miles in the appropriate fields.

12.  Enter the activity and business miles in the center grid. All business activities on the return will display in this grid.

13.  Enter the actual expenses paid in the applicable boxes.

14.  Select the two evidence questions at the bottom if applicable.

15.  Click Close.

16.  Click Return to List.

17.  Click Close.