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.
Depreciation method: GDS 200% DB/HY
Period: 5 years
In service: 1/31/2016
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!
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.
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