Change depreciation schedule from 7 years to 5 for a work vehicle under 6000 pounds.

[lamentingtaxes]

I placed a new car in service in July 2024 and used the bonus depreciation. I reviewed last years files and see the vehicle is on a 7 year depreciation schedule. What is required to change the schedule to 5 years using Turbo Tax? Do I need to amend my 2024 return?

[PatriciaV]

In general, you would file an amended return only if you failed to claim depreciation for the asset. Because you are correcting the class-year for an asset that was reported last year, your best option is to file Form 3115 for a change in accounting method. This option allows you to report the change on your current tax return.

See the instructions for preparing Form 3115 here: What should I do if I didn’t take depreciation on my rental property?
Ignore the references to "rental property," as the form can be used for any depreciable asset. Skip to the section "How do I change my accounting method?" You will need to use TurboTax Desktop (any version) to complete Form 3115.

[AmeliesUncle]

Just checking ... are you SURE it was set to 7 years in 2024?  Did you enter it as a regular asset, rather than a "vehicle"?

Option #1: Amend 2024 to correct the amount of depreciation (but see the second part of #3 below)

Option #2:  File Form 3115 to 'catch up' on the missed depreciation (but see the second part of #3 below).  But that is long, confusing and tedious form so I would NOT recommend this method.

Option #3:  Ignore the error and correct it on this year's tax return.  For most depreciable assets, you would be forgoing some of the missed depreciation in 2024 (the difference between 7 years and 5 years).  However, due to the vehicle limits that you presumably maxxed out, you wouldn't really be missing any depreciation, so personally, I would just correct it for this year's return and move on.