Question
Self-employment expenses — Section 179 vehicle deduction
I am filling out the vehicle section under self-employment expenses. I bought a used car in April 2021 and didn’t start using it until June 2021 (it had to be transported from another state). I started using it for business purposes as soon as I received it. I paid $3,600 for it but its blue book value was $6,626 at the time. I used the car for business 54.94% of the time. Turbotax is telling me that, based on the percentage used for business, the max amount of depreciation, including Section 179 and the special depreciation allowance, that I can take for this vehicle is zero. This doesn’t seem accurate. What am I doing wrong and how can I correct this?
Thanks for your help in figuring this out.
