Enter the vehicle information in the "vehicle" part of expenses. Continue through all the questions related to the car until you arrive at the screen where it asks the value of the car.
The next screen, How much do you want to deduct for the business use of this vehicle? will let you enter the amount you want to take for a Section 179 deduction.
That screen didn't pop up for me. The last question I get is for other expenses.
Here are the steps to allow for your section 179 allowance:
- Update your business entries
- On the screen that says Let's gather your business info
- Update Business Income and Expenses
- Edit your business
- On the screen that says Your (name of business) Business
- Update Business Vehicle Expense under Business Expenses
- Edit the vehicle that you will see listed, or add it if not done already
- Review or enter the vehicle name, type and date put into service and continue through the screens
- You will see an option to either take the standard deduction or deduct your actual expenses, you need to choose the actual expenses option
- Work through the questions and eventually you will see a screen that says Do you want to take the Special Depreciation Allowance?, answer "yes" to that question and you will be allowed the section 179 deduction.
My last 3 screens.
#1 Asks what did I pay and what was the value of the car when I started using it for business? I started using it for business a few days later. It does mention depreciation but does not mention section 179 or ask a question about it.
#2 Do I want to continue using actual expense method
#3 And other expenses?
Then it finishes.
I suspect that you are not offered the section 179 deduction because your tax return does not qualify for the section 179 section deduction.
These two issues are both discussed in this IRS publication.
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If you are married filing separately, you and your spouse must allocate the dollar limitation for the tax year.
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The total cost you can deduct is limited to your taxable income from the active conduct of a trade or business during the year. You are considered to actively conduct a trade or business only if you meaningfully participate in its management or operations. A mere passive investor is not considered to actively conduct a trade or business.