2019 Special Depreciation of Business Vehicle

[Carole Hill]

We purchased a new service truck (over 6000 lbs) 10/1/2019 and put it into service on 12/1/2019.  Does it qualify for the 100% special depreciation?  When I put the acquisition and service dates into turbo tax the program only gives the actual amount spent on gas and other vehicle expenses - no depreciation at all.

[MarilynG1]

You have to set up your Business Vehicle as an Asset in the Business Expenses Section in order to select a depreciation method, unless you use the Standard Mileage Deduction.

Remember that if you claim 100% Depreciation, if you stop using the vehicle before it is fully depreciated (5 years), or switch to another Business Vehicle, you may have to recapture some of the depreciation you already claimed.

Click this link for a detailed article on Depreciating Business Assets.

This link gives instructions on How to Set Up a Business Vehicle . 

[Carole Hill]

Hi Marilyn,

Thanks for responding.  I'm confused with how the program is treating the information.  I've entered the placed in service date as 12/1/2019 and the acquisition date as 10/01/2019.  The program doesn't allow any depreciation.  If I change the dates to 1/1/2019 it does allow full depreciation, thus my question of whether the vehicle has to be in service the entire year.

Carole

[MarilynG1]

No, the vehicle doesn't have to be used all year to claim the Special Depreciation Allowance.  It just has to be claimed the first year you are using it for Business.

I put your info in TurboTax, and after entering Expenses, next screen asks for Cost Basis (screenshot).

Next screen asks if you want to claim Special Depreciation Allowance (screenshot). 

Review your entries in this section if you don't get the same results.