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Returning Member

Depreciation schedule on vehicle over 5 years for 1120

I'm trying to do my own C corp taxes this year, and I noticed that the depreciation schedule my former CPA had on a pure business use vehicle is different than what Turbotax is calculating.

Cost: $25,000
Depreciation method: GDS 200% DB/HY
Period: 5 years
In service: 1/31/2016

2016: $3,160
2017: $5,100
2018: $3,050
2019: $1,875
2020: $1,875
2021: $1,875

Total Accumulated Depreciation: $16,935.00

Why does the method my former CPA using limit deprecation limited to $16,935? How would I do this in Turbotax? Turbotax seems to do accumulate 100% depreciation over 5 tears. Thanks!

2 Replies
Intuit Alumni

Depreciation schedule on vehicle over 5 years for 1120

 There is no way to know what your accountant did. 100 percent business use:  See the IRS tables below. Hes should have used the half year convention (Table A-1)  if placed in service in January, unless you had over 40% of depreciable assets placed in service in the last quarter.
The mid-quarter convention.

Use this convention if the mid-month convention does not apply and the total depreciable bases of MACRS property you placed in service during the last 3 months of the tax year (excluding nonresidential real property, residential rental property, any railroad grading or tunnel bore, property placed in service and disposed of in the same year, and property that is being depreciated under a method other than MACRS) are more than 40% of the total depreciable bases of all MACRS property you placed in service during the entire year.
Intuit Alumni

Depreciation schedule on vehicle over 5 years for 1120

MACRS tables, half year convention.

Declining balance rate.

You figure your declining balance rate by dividing the specified declining balance percentage (150% or 200% changed to a decimal) by the number of years in the property's recovery period. For example, for 3-year property depreciated using the 200% declining balance method, divide 2.00 (200%) by 3 to get 0.6667, or a 66.67% declining balance rate. For 15-year property depreciated using the 150% declining balance method, divide 1.50 (150%) by 15 to get 0.10, or a 10% declining balance rate.

The following table shows the declining balance rate.

Property Class               Method         Declining Balance Rate

5-year                           200% DB                     40.0

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