Section 179 bonus depreciation for SUV

[glarson0921]

I purchased a large used SUV and took the full depreciation amount of $30,000 in 2022 using the special depreciation allowance.  When I am doing my 2023 taxes, TT is calculating a depreciation for 2023 on this SUV.  This doesn't seem right.  Can I still get depreciation in future tax years after taking the specials depreciation in 2022 using the Section 179 bonus depreciation?

[Rick19744]

I'm not sure you have provided TT with complete information?

You are calling it Section 179 bonus depreciation; this is not a tax term or option.

These are two different provisions:

• Section 179 which had a limit of $27,000 for 2022
• There is bonus depreciation, which you could have expensed the full amount

You also don't indicate whether you used TT in prior year and everything rolled over, or whether you are inputting the information for the first year in TT.

If you used TT in 2022, you need to go back and see how it was actually handled; look at the depreciation schedules.

Also what is being reflected in the 2023 details for this asset?

I believe once you clean this up, you will be fine.

[glarson0921]

Thank you for replying.  Yes, I used the bonus depreciation to depreciate the entire amount of the SUV in 2022, using Turbo Tax.  When I was doing my 2023 taxes, I carried over the information from 2022 into the 2023 Turbo Tax return.  Turbo Tax did not recognize that I depreciated the entire amount of the SUV in 2022 and depreciated it using the 5 year method.  I had to go in and manually change the prior depreciation field in the depreciation work sheet in turbo tax for 2023 (it was blank).  I would have thought this would have carried over from the 2022 data, but it didn't. 

Is it correct to assume that if you take the special bonus depreciation for 2022, that you can't start depreciating the SUV again?

[PatriciaV]

You are correct. An asset is depreciated up to its full value and nothing more. If you claimed the full amount last year, you are done with depreciation for this asset.

[Green Grass]

I have the same issue. How do you keep it from creating a 5 year depression schedule. I think it's a turbo tax glitch. 

[glarson0921]

I also think it is a turbo tax glitch.  I had to go into the depreciation form and entered the amount of depreciation that I took last year (over riding what turbo tax put in there).   It then recalculated everything.   I submitted my taxes a couple of months ago and everything was accepted.