I am using Turbotax 2024 Home and Business Edition. I am confused about the software's calculation of vehicle depreciation. Here are the entries on Form 4562, line 26 (all filled through Turbotax):
Col a Tesla Model 3
Col b 12/06/23
Col c 96.3%
Col d 39969
Col e 18294
Col f 5
Col g 200 DB-MQ
Col h 1390
As you see, the car was put into business use on 12/6/2023. Since I took a 179 deduction ($20200) last year, this year’s basis becomes 18294 (39969 x 96.31% - 20200 = 18294). Columns f and g seem right except for the MQ convention entered by Turbotax automatically. I am supposed to get $7318 (40% x 18294) depreciation this year; however, only 1390 (Column h) is entered in the tax form. I am not sure how it is calculated; I guess it was caused by the MQ entry in column g. The car was used for the entire year, and I did not enter the “middle of the quarter” anywhere during the process. Can anyone explain what happened?
Thank you in advance.