turo is car-as-airbnb. but car depreciation is brutal.
your car loses value fast. that's a deduction. but turo income is usually schedule c (active business), which means se tax on top of everything.
free 2026 turo tax calculator: self-employment tax, mileage deduction at 72.5¢/mile, federal & state brackets, and quarterly estimated payments for turo rental hosting 1099 contractors.
your turo math
the form arrives. or it doesn't. you still owe.
turo's host plans: 60–90% host earnings depending on insurance plan you choose (more coverage = lower earnings %). plus optional add-ons (delivery, unlimited miles, extra mileage charges).
turo's heavy depreciation on vehicles is a real deduction, but it gets recaptured when you sell. and turo's insurance plans are NOT the same as your personal auto insurance — gaps in coverage have left some hosts paying out-of-pocket for incidents. read the fine print on the protection plan.
5 deductions specific to turo
your turo vehicle depreciates as a business asset. macrs typically 5-year depreciation for cars. major deduction in early years.
10–40% depending on protection plan. fully deductible.
if you carry commercial auto insurance for turo (some hosts do above the platform's protection), that fully deducts.
every oil change, tire replacement, car wash between rentals. all deduct.
the rental-use portion of registration and ad valorem taxes deducts.
turo host with 3 cars in atlanta, $48k gross, $12k turo fees + maintenance + insurance, $10k depreciation
as schedule c (which is typical for active turo hosting): net $26k. se tax ~$3.7k + ga income tax ~$1.4k + federal ~$2k. take-home: ~$41k cash, but real economic profit much lower after depreciation.
turo, specifically
turo is renting out my personal car — schedule c or e?+
usually schedule c — you're actively managing the rental business (cleaning, swapping, communicating with renters). that means se tax applies.
what if a renter damages my car?+
turo's protection plan should cover damage above deductibles. but the insurance gap thing is real — many hosts have horror stories. read the policy.
do i need a commercial driver's license to host on turo?+
no, but you do need a commercial-use insurance rider in some states. and your personal policy may exclude rental use entirely.
i have a turo lease — can i deduct lease payments?+
yes, the business-use percentage of lease payments deducts. for full-time turo cars, that's 100%.
also drive, sell, host, or stream elsewhere? combine on one schedule c.
your turo 1099 income gets added to every other gig you do for the year. one self-employment return covers all of it — and miles, fees, and home-office allocations may apply across platforms.